13/01/2016 House of Commons


13/01/2016

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I trust members leaving the chamber will do so quickly and quietly,

:00:00.:00:00.

preserving their private conversations for somewhere other

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than the chamber. Mr Speaker, I wondered if overnight

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you have had an opportunity to reflect upon the points of order I

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raised at the end of the debate last night. The certification process is

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a new procedure. It is very, very important that we get it right.

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Particularly since it has stch negative and adverse affects for MPs

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for Northern Ireland and from Scotland. I intended no criticism of

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you, Mr Speaker, however I would hope, Mr Speaker, that you would

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accept that when the governlent tables a new clause that mentions

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both England and Wales, but then a designation is made in the

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certificate that it applies exclusively to England, it hs

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inherently ambiguous and contradictory. That is the point I

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was making and I would like clarification of how we correct a

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certificate which is design`ted apparently incorrectly.

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I thank the honourable lady for her point of order. More over, H can

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confirm to her and to the house that I am aware of the point of order

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that she raised with the ch`ir yesterday evening, specific`lly the

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first deputy Chairman of Waxs and Means was present at the tile. Let

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me say this to the honourable lady, who I know would never be gtilty of

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any insults to or display of discourtesy towards the chahr, that

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I think she and the House c`n usefully benefit from an explanation

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which on this occasion - and I emphasise on this occasion- I am

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happy to provide. It is understandable that she initially

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surmised that new clause 62 should have been certified as relating to

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Wales, as well as to England. But, the reality is, as close ex`mination

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testifies, the application to Wales falls into the category of linor or

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consequential as - and this is the crucial point - it makes no change

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in the law applying in Wales, and so, in the view of the chair, which

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was informed by the combined advice of the clerks and the officd of

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Speaker 's counsel, it was rightly certified as relating exclusively to

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England. I do not in general intended to explain my decisions in

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this way, and that is why I emphasised that I was happy on this

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occasion to provide an expl`nation, but as this is the first occasion of

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a legislative grand committde and the suggestion, which I absolutely

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accept was honest and well-intentioned, of error on the

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part of the chair, is on thd record, I have thought it best to ptt the

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matter straight. That said, I should also like to take this opportunity

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to say to all members that the whole point of my publishing provhsional

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certificates is to give thel ample opportunity to make representations

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if they think that an error has been made or are they wish simplx to

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express a contrary view before I am required to make a decision which

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must then be regarded, for reasons with which the house will bd well

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the milieu come as final and not subject to further appeal. ,- will

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be well familiar, as final. The proper Channel 4 representations on

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the draft or provisional certificate is via the clerk of the Ashlead

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registration in the public bill office. I hope that is -- is through

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the clerk of registration. H hope that sell pulled to the honourable

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lady and the House. We will hear from the honourable lady.

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I am enormously grateful to you for making that statement on thhs. I

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have noted that it is in fact an exception on this occasion. Bearing

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in mind what the Speaker has said, may I just note for the record that

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the four members who represdnt Northern Ireland constituencies

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Sinn Fein members, do receive report -- support for Edinburgh stdel and

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secretarial assistance. I sht as an independent member representing

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North Down and is -- receivdd no additional funding for secrdtarial

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or administrative assistancd. In light of the very comforted its

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certification process now introduced which affects me and other

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representatives from Northern Ireland, I wonder if the Spdaker

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would give some consideration to additional support for membdrs like

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me when we have two go throtgh the certification list. -- clean we must

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go through. -- when we must go through.

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It is not for me to consider the provision of additional support in

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the sense in which she implhes it, that is to say financially paid for

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support. Secondly, and I intend no discourtesy to the honourable lady

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and I am not being pedantic, I am trying to be precise, there is a

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real sense in which the honourable lady does not go through thd

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certification process. I do, that is the responsibility of the chair with

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which I have been invested by the House. Thirdly, and I am re`lly

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trying to be helpful to the honourable lady and to the House in

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the context of what is a new procedure, although it is not for me

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to pledge or to hint at any additional support of a kind that I

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think she might have had in mind, what the honourable lady dods have

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is the support of the clerks and other procedural specialists in this

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house. The honourable lady knows well the route to the table on us --

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table office, and I if I max say so think she should take advantage of

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their expertise. Our bewiggdd friends have considerable expertise

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in these matters. They are not only prepared to advise the honotrable

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lady and any other member, they are positively excited by the prospect

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of doing so. The fact that they are excited by the prospect, I say to

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the shadow leader of the hotse, rather suggests they will h`ve a

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smile on their face at the time And they have now. I hope that will do

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for today. The honourable l`dy and I know each other well and if she has

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further difficulties in the future I am always pleased to hear from her

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and do try to assist her and any other member in this or any other

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matters. We now come to the ten minute rule

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motion. Mr Toby Burtons. I beg to of that league be given to

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provide for a Roof earning wish National Anthem to be used `t

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sporting occasions where a piece of music is required. I would like to

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say at the outset that I'm neither a Republican nor an atheist nor an

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English nationalist. I will speak more about that theme shortly.

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Members should detection of stellar tea by me towards God, Her Lajesty

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The Queen, God staved the Qteen or the United Kingdom. It is precisely

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out of respect for preserving many of these things that I belidve the

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time has come to consider the question of an English National

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Anthem. I would like to record the excellent work already done on this

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issue by the Honourable member for Leeds North West, the member for

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Shrewsbury, and the member for Romford. This is a cross-party

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campaign and I believe the Prime Minister has also shown somd

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sympathy for the argument of an English National Anthem. Thd level

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of interest confirms to me `nd anthem for England is a movdment

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whose time has come. As is often the case, fries in this Parliamdnt, we

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must catch up with public opinion and allow the voice of Engl`nd to be

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heard. I spoke with radio stations in all corners of England this

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morning, such was the interdst in debating on what the anthem should

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be full to be provoked on the streets of towns far and wide, each

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different area reflect the Divis us of our multifaceted nation. I want

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silky area was that thought it should be Heaven Knows I'm Liserable

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Now, it will remain a secret between myself and, this was BBC Hulberside,

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that was reflected that each local area has its own sense of what

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Englishness means and it's often seemed incongruous to me th`t when

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England has played against other home nations on the football or

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rugby fit that was the Welsh or Scots sing and anthem that reflects

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their nation's identity, England should sing about Britain. Ht

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reflects a sense that we sed Britain and England as synonymous and this

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not only can I does English and option to celebrate the nathon that

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is being presented, but is `lso a cause resentment amongst other

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countries in the British Isles who feel that England have requhsitioned

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the song. I have deliberately not referred to fight on the situation

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and occasions from Northern Ireland of what is discussed today. While

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this bill is the degree abott England and would have no

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jurisdiction over Northern Hreland whatsoever, I've received

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considerable interest from Northern Ireland so I will respond to that in

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a moment. I would like to s`y little about the current situation.

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National anthems are matter of convention and the British National

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Anthem is accepted as God S`ve The Queen. This is not enshrined in law

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anywhere. The first teen singer National Anthem with the Welsh Rugby

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to in response to the New Zdaland Hakka. Since then the Welsh edition

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of singing land of my Fathers was given a Welsh flavour to evdry

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sporting contest they compete in. Flower of Scotland has been used as

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a National Anthem by the Scotland national rugby team for each of

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their defeats, or should I say matches. I want to speak brhefly of

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Northern Ireland. There was an exception. I recognise that matters

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of the cost juice and are particularly keenly felt in Northern

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Ireland and this bill only reformers to an English consultation. The

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Northern Ireland football tdam the singer God Save The Queen and I ve

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had a single contact from mddia citizens in Northern Ireland,

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interestingly collars to BBC radio Northern Ireland seeming disaster by

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the idea of people being given a choice but that will be the matter

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from Northern Ireland. I don't believe England should be forced to

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make their decision based upon the fact it might cost pressure to be

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put on authorities in Northdrn Ireland to make a different decision

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themselves. Cons -- in cost additional matters is better to

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allow the voice of the people to be heard and to dictate if at `ll

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possible. The important steps towards making the spot is ly

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Scottish Parliament the most evolved in the world, and other

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devolutionary measures, mean we need a fresh assessment for Engl`nd and

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Britain as part of re-establishing the distinct identities of before

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nations that make up the UK of Great Britain and Northern Ireland. I

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don't believe that means we should fear recognising England as an

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entity, but we should welcole the opportunity to be establishdd idea

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that the UK is a union of four separate nations with their own

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identities that are part of a wider union further on mutual good. It is

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remarkable for me that foot`ge of the 1966 World Cup, it was ` proud

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occasion and on that occasion, if you look on the ground you so you

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the union Jack, even in the 199 World Cup, England fans completed

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the union Jack. It was in 1896 and the European Championship, possibly

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because England were drawn to play against Scotland, that the flag of

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St George came to be seen as the flag of England and the union Jack

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is now virtually disappeared at Wembley when England are pl`ying. In

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2010 the Commonwealth Games Council for England conducted a poll of

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members of the public that decided the anthem for the 2010 Comlonwealth

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Games should be Jerusalem that at the options were God Save The Queen,

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Jerusalem and land of Hope `nd Glory. Jerusalem was the cldar

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winner with 52% of the vote. Land of hope and glory received 32 cassette

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and God Save The Queen just 12% Jerusalem is a favourite choice of

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those who voted in the Commonwealth Games ball, so it seems to be an

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early favourite amongst those who have engaged with me amongst the

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public. Campaign group In That My Heart is competing for Jerusalem to

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play for England rugby matches and that levels of what it seems like if

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all gone -- a foregone conclusion. I have no way of knowing whether there

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is a way of putting people off William Bates' classic chewhng but I

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suspect driving around Parlhament Square with a van blaring it out

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might be a way to achieve that. You cannot always choose your friends in

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these matters. Nonetheless, I welcome the fact they are

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enthusiastic. The Zionist mhnd agent to bring this bill to parli`ment

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there has been widespread coverage and there has been lots of support,

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a daily Mirror poll said 71$ were in favour of an English Nation`l Anthem

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and we need a more formal attempt to take peoples of the nation. My bill

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will not specify what anthel should be chosen, my bill puts a dtty under

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Secretary of State for culttre, media and sport told a constltation

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across England and will conclude what the National Anthem should be

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and at the end of the consultation will call me secretary of state to

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rise to the football that she Robbie football union come netball and any

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other sporting bodies that have athletes or teams of athletds

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representing England and informed than the English National Anthem

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should be used in the event that a piece of music is acquired dither

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prior to the contest or at the awarding of medals. Once thd bill

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has been passed it will be the section states to decide wh`t form

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the consultation should takd and what the contenders should be.

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Alongside the choices listed by the Commonwealth Games, anthems like I

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vowed to be my country and they will always be in England have bden

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suggested. Others believe it could be opportunity for the X Factor

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style programme to combine traditional choices alongside maybe

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some newly commissioned opthons The opportunity for this to be ` real

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moment of engagement with the English people about this specific

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aspect of our future directhon is significant. This idea has had many

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positive reviews, including supportive comments -- colulns in

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the daily Mirror and the Sunday express. I was responded to read

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that a friend of Her Majestx considered the idea was rudd. But

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having upmost respect for the inventors of the lady concerned I

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fear the response betrays the extent to which the question of Englishness

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is passed to buy and lead the nations have chosen to no longer use

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the British anthem, it's too late for this to be a question of all

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component parts of Britain `cting in the same way, so it makes England

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the outlier. I hope the house give support for this important bill and

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while I accept that the Sunday should be more important issues with

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you to consider, the issue of national identity is a powerful one

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and my speed is that ignoring the issue only allows it to fester. I

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believe the consultation th`t my bill proposes will lead to `

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national conversation across England and ultimately the voice of opinion

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will be heard. Whatever it was the people make, it will be the majority

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views and we in this house can do no better than make sure the voice of

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England is heard. The questhon is that the honourable member have

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leave to bring in the bill. Thank you Mr Speaker. I rise to oppose

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this bill. I congratulate the honourable gentleman for just - for

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Chesterfield the following hn the footsteps of Flanders and Swann

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Some years ago they proposed that England should have its own National

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Anthem and they came up with the English, the English, the English

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were best. I will not go through all the lines cause they are not a great

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advocate of political correctness. Some elements in this modern age may

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cause some discombobulated `nd to some of our honourable membdrs.

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Particularly my friends in the SNP for that there's an excellent line

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about the Greeks and Italians eat garlic in bed, something to be

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strongly advised against as an unpleasant and somewhat malodorous

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habit. Actually, I oppose this proposal for deep and seriots

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reasons. What greater pleastre can there be for a true born Englishman

:17:23.:17:29.

or true born English woman to listen to our own National Anthem. A

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National Anthem for our old country, for our whole United Kingdol, of

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which England is but a part, but an important part. And to listdn to

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those words that link us to our sovereign, who is part of that chain

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that takes us back to our mdmorial history to sing, or if one cannot

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sing, to listen to the music, the June Zebre June that invokes our

:17:59.:18:05.

loyalty to our nation has bdcome over the years. A tune that has been

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popular since 1745 when it hs thought to have started in response

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to the Jacobite rebellion. H'm usually in favour of Jacobites from

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these reasons. On this occasion they were traitors, and not to bd

:18:25.:18:32.

encouraged. The words that develops then and have remained constant

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changed only when we have a woman on the throne rather than a man. A tune

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that encapsulates the patriotism that we wish to express when

:18:43.:18:48.

supporting a team and when the honourable gentleman for

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Chesterfield said that now Dnglish crowds take St George's flag rather

:18:52.:18:57.

than the union Jack, to me that as a matter of pity, shame that we have

:18:58.:19:01.

given up viewing ourselves `s one year it is kingdom whether we are

:19:02.:19:05.

supporting England, Scotland, Wales or Northern Ireland and it tsed

:19:06.:19:11.

expressions of individual nationalism or a dish uniting factor

:19:12.:19:16.

in our country. In a countrx that we ought to want to make more tnited

:19:17.:19:23.

and they have taken to having Jerusalem as the honourable

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gentleman mentioned at various sporting occasions, it is stng at

:19:26.:19:30.

the beginning of Test matchds in some grounds, and glad to s`y this

:19:31.:19:35.

does not seem to happen at Lord s, which think is an indication of a

:19:36.:19:42.

proper ordering of things, H'm not sure that singing a jolly ttne at

:19:43.:19:45.

the beginning of a match is particularly dignified and

:19:46.:19:51.

represents the nation as thd nation of what he represented. And they

:19:52.:19:54.

have taken to Jerusalem and juridical has a good tone to it It

:19:55.:20:00.

is a happy song for people to sing and we should all be in favour of

:20:01.:20:06.

happiness. But does it really make us have that patriotically pride

:20:07.:20:10.

swell up in ours in the way that we would like. When we think of the

:20:11.:20:14.

words of Jerusalem, there is a question I must pose that it is a

:20:15.:20:22.

highly speculative question, and did those feet in ancient times, this

:20:23.:20:27.

question being asked? But I come from Somerset and I know thd answer.

:20:28.:20:31.

It is well-known that Christ was taken by Joseph of Arimathe` to

:20:32.:20:36.

Glastonbury. Why injuries long would anyone want to sing did, whdn we

:20:37.:20:43.

know the truth is that Christ not only want to Glastonbury but also in

:20:44.:20:47.

that old Somerset saying to a trip to assert the truth of anything that

:20:48.:20:56.

Christ also went, probably `lso as a young man to pretty. Do you possibly

:20:57.:21:02.

want to have an anthem that questions is undeniable truth of

:21:03.:21:07.

God's on county, that countx is particularly selected for vhsitation

:21:08.:21:10.

by Aaron Lord when he was on earth? Not only does this proposed bill

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seeks to regularise something that in our particularly brilliant

:21:18.:21:22.

British way we have never previously needed to regularise, that `re

:21:23.:21:25.

rational anthem has come about overtime without needing regulation

:21:26.:21:32.

or bureaucracy or any of thdse things we dislike. That is ` reason

:21:33.:21:39.

for opposing it. It does reduce that sense of devotion to our sovereign

:21:40.:21:44.

that we ought to have, it is proper to have, indeed, that we ard firm or

:21:45.:21:49.

take oath that we will have when we swear or affirm as members of

:21:50.:21:53.

Parliament, and that would be a sad thing to lose. It lacks the courage

:21:54.:21:57.

of Flanders and Swann to go the whole hog and be really properly

:21:58.:22:04.

eccentrically patriotically. It is a second-tier level of Nation`l

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Anthem, though I must confess I was relieved that it was proposdd the

:22:07.:22:10.

anthem might be a song norm`lly sung at the Labour Party conference, that

:22:11.:22:17.

the one chosen was not the red flag. The with the current trend hn the

:22:18.:22:19.

leadership of the Labour Party would not surprise me if in a year we have

:22:20.:22:24.

a private members bill making singing the red flag compulsory as

:22:25.:22:30.

well. I'm glad to get support from the front bench to the side of the

:22:31.:22:35.

aisle, where they probably think it's hardly good idea. We don't want

:22:36.:22:40.

to get them away from the wrong song, one might as -- offend some --

:22:41.:22:46.

since builders, we should affirm our loyalty to the sovereign lady when

:22:47.:22:51.

we should confound politics and frustrate his knavish tricks, Mr

:22:52.:22:54.

Speaker. The question is th`t the honourable member have leavd to

:22:55.:22:55.

bring in The question is that the Honourable

:22:56.:23:07.

Member have leave to bring hn the Bill. As many as are of the opinion,

:23:08.:23:16.

say "aye". To the contrary, "no . The Ayes have it.

:23:17.:23:19.

Who will bring in the bill? Angela Smith, Bob Stewart, Michael

:23:20.:23:23.

Fabricant, Sir Gerald Howard and myself, sir.

:23:24.:23:35.

English national anthem Bill. Second reading, what day? Friday the

:23:36.:24:06.

4th of March. Thank you, order. We come now to the main bushness,

:24:07.:24:12.

opposition Day 15th awarded today, and to the motion in the nale of the

:24:13.:24:17.

leader of the Scottish National Party. To move the motion on trade,

:24:18.:24:22.

exports, innovation and productivity, I call Mr Stewart

:24:23.:24:28.

Hosie. Thank you, Mr Speaker, I beg to move

:24:29.:24:32.

the motion in the name of mxself at my honourable friends. It is a

:24:33.:24:38.

serious debate and it is appropriate, I think, that we do it

:24:39.:24:44.

today, given the news published yesterday that UK industrial output

:24:45.:24:50.

has suffered its sharpest f`ll since 2013. And, of course, the ftrther

:24:51.:24:55.

assessment yesterday that ddscribes how real terms in earnings hn the UK

:24:56.:24:59.

are still now substantially lower than they were in 2009, and even GDP

:25:00.:25:08.

growth over the last decade or so has been lower than Japan dtring its

:25:09.:25:19.

decade of stagflation. I thhnk it is important when we recognise the

:25:20.:25:23.

matters we are going to address are not based on some short-terl issue,

:25:24.:25:26.

this is not a quick politic`l hit, this is trying to get to thd root

:25:27.:25:32.

cause of a long and systemic problem in the UK, the failure to address

:25:33.:25:38.

trade and exports, innovation and productivity in total over tp

:25:39.:25:47.

prolonged period of time. The reason we have chosen to debate all of

:25:48.:25:50.

these matters is that they `re licked. The debate is also, rightly,

:25:51.:25:58.

because it is also partly about this imbalance in the UK economy. That in

:25:59.:26:04.

balance, or more accurately those imbalances, are now actuallx

:26:05.:26:07.

recognised by this government, but our judgment is they will not and

:26:08.:26:11.

cannot be resolved firstly without the real political will to do so

:26:12.:26:17.

we are discussing today are fully we are discussing today are fully

:26:18.:26:23.

and properly addressed as wdll. The imbalances we talked of in the

:26:24.:26:27.

economy are not simply betwden England and Scotland, or London and

:26:28.:26:32.

the rest of the UK, a city previously described by a mhnister

:26:33.:26:35.

as a black hole sucking the sources and talent out of everywherd else in

:26:36.:26:44.

the UK, but also, still, sadly, imbalances between manufacttring and

:26:45.:26:47.

services, between businesses which export and those which do not,

:26:48.:26:52.

between companies which innovate and those which do not. And the impact

:26:53.:26:59.

of all of this is most starkly seen in the balance of trade numbers For

:27:00.:27:06.

the full year in 2014, the TK ran a balance of trade deficit of ?93

:27:07.:27:13.

billion. For the same year, the deficit in the trade and goods was

:27:14.:27:21.

quite extraordinary ?123 billion. That is ?123 billion in the red

:27:22.:27:30.

simply in the trade and goods. And the impact in GDP, as is well-known

:27:31.:27:35.

and published by the governlent was negative, and, unsurprisingly, the

:27:36.:27:40.

summer Budget confirmed it would remain negative through every single

:27:41.:27:43.

year of the forecast period in this Parliament. Through two 2020. He

:27:44.:27:53.

referred to Japan in his introductory remarks.

:27:54.:27:56.

He will not have missed the fact that Europe has been in recdssion

:27:57.:28:00.

for much of the period that this economy has been growing and has an

:28:01.:28:03.

inevitable impact on our balance of trade, our biggest partners.

:28:04.:28:09.

I will come to that. If the trade deficit was simply a conseqtence of

:28:10.:28:13.

the deep recession, then thd honourable gentleman would be right,

:28:14.:28:17.

but as I will demonstrate l`ter this is not an issue that has gone on for

:28:18.:28:23.

five years or ten years, or 20 years, or 30 years, but 50 xears,

:28:24.:28:30.

and this is the issue, this deep, underlying, systemic issue hs the

:28:31.:28:32.

one that we actually need to address. I was saying the

:28:33.:28:38.

contribution to GDP is negative for the entire forecast period `nd that

:28:39.:28:42.

was published in the summer Budget, and again in the Autumn Statement,

:28:43.:28:46.

but those figures, worryingly, were actually marked down, actually worse

:28:47.:28:52.

than the corresponding forecast published in the spring Budget

:28:53.:28:56.

before the election. What wd are seeing is not a stabilisation, isn't

:28:57.:29:02.

a recovery which allows somd sense of normality, but a continuhng

:29:03.:29:07.

decline, and that would appdar brash and I will demonstrate this later, I

:29:08.:29:11.

hope - in terms of almost every metric we look at.

:29:12.:29:16.

Does the Honourable Member `lso accept that the OBR expects

:29:17.:29:20.

productivity growth to return to its historic average by the end of 017?

:29:21.:29:26.

I have seen the OBR forecasts, I will quote some of them latdr, but I

:29:27.:29:30.

am also taken with what the Chancellor said more recently than

:29:31.:29:35.

the last OBR forecast, which is it is not now Mission accomplished

:29:36.:29:39.

almost as if he is getting his excuses in first and preparhng to

:29:40.:29:45.

blame other people. I have seen the OBR forecast, but things ard not all

:29:46.:29:48.

hunky-dory, everything in the garden is not rosy, and given we are

:29:49.:29:55.

looking at GDP growth over ` decade worse than Japan's lost dec`de, it

:29:56.:30:00.

would be wrong to be complacent in the way some of her governmdnt are

:30:01.:30:05.

doing. When the Chancellor said to the

:30:06.:30:09.

country at large and the Tory press in particular that the country was

:30:10.:30:16.

in... The economy was running into the buffers, wasn't he really

:30:17.:30:19.

demonstrating that the long,term economic plan was just a mirage

:30:20.:30:27.

The honourable gentleman is absolutely right, the long-term

:30:28.:30:33.

economic plan is a sound bite. It was predicated on the deficht being

:30:34.:30:37.

reduced, the debt being redtced the borrowing falling to nearly ?20

:30:38.:30:44.

billion last year. Every single one of the targets the government set

:30:45.:30:49.

they failed to meet. The Ch`ncellor did not meet a single one of their

:30:50.:30:54.

key fiscal targets he set for himself in the last Parliamdnt. But

:30:55.:31:02.

the key thing about the imp`ct of trade and exports on GDP is that it

:31:03.:31:08.

is negative and has been marked down. I would ask the hosts to think

:31:09.:31:14.

just how different that is to the promise, that reality is to the

:31:15.:31:20.

promise made by the Chancellor when he stated exports would be `

:31:21.:31:24.

significant contributor to GDP growth primarily to shift the

:31:25.:31:27.

economy away from our reliance on household consumption. As wd saw

:31:28.:31:34.

yesterday, because industri`l exports are down and they are likely

:31:35.:31:39.

to continue to fall, certainly not to grow in the way he has promised,

:31:40.:31:45.

we will continue to have a dependence on household consumption

:31:46.:31:49.

and a rise in household debt which would be inconsistent with `

:31:50.:31:54.

properly rebalanced economy. I think a great deal of private

:31:55.:31:57.

sector industrial investment over the last 30 years has been connected

:31:58.:32:00.

with the oil industry, and thinking of the threat to jobs and working

:32:01.:32:04.

families in Scotland in particular, would my honourable friend comment

:32:05.:32:10.

system of exploration credits, successfully introduced in Norway

:32:11.:32:13.

some years ago, to kick-start exploration as one ways of

:32:14.:32:17.

addressing this crisis? After 30 years of raking in ?30

:32:18.:32:21.

billion of revenue, shouldn't it be payback time for North Sea workers?

:32:22.:32:28.

It certainly should in the sense that this sector is not simply

:32:29.:32:33.

important for Aberdeen or for Scotland, but for a supply chain

:32:34.:32:36.

throughout the UK. Indeed, `s the Right honourable gentleman for

:32:37.:32:45.

Rutland said at First Minister s Questions, you laid out his

:32:46.:32:47.

question, the potential dam`ge should the sector continue to

:32:48.:32:52.

suffer. -- he laid out. This government should do many things.

:32:53.:32:58.

Continue to protect people who want to enter that sector, that they are

:32:59.:33:04.

properly trained, to continte to support the supply chain in the

:33:05.:33:07.

north sea basin and internationalise. They should look

:33:08.:33:13.

again at supporting the indtstry as it cuts costs. They should look at

:33:14.:33:16.

the overall fiscal framework, because that is our substantial

:33:17.:33:21.

cost, and look again at all of the credits available, explorathon or

:33:22.:33:30.

production, geographic areas or for specific all types, to absolutely

:33:31.:33:33.

maximise the longevity and employment and contribution to the

:33:34.:33:38.

economy of a sector which, `gain he is right to remind the government,

:33:39.:33:46.

has raked in for them more than ?300 billion since oil started coming

:33:47.:33:52.

ashore. Does he see any inconsistency in the

:33:53.:33:56.

answer which he has just given to his colleague between incre`sing our

:33:57.:34:02.

looking for ways of increashng the output of North Sea oil and the

:34:03.:34:08.

Scottish National Party's or name of totally decarbonising energx

:34:09.:34:13.

production in Scotland? -- the Scottish National Party's t`rget.

:34:14.:34:19.

I think the decarbonisation of electricity production is a sensible

:34:20.:34:22.

thing for large numbers of reasons, and that may well include c`rbon

:34:23.:34:26.

capture and storage. Of course we have seen on a number of occasions

:34:27.:34:30.

over the last five years, vdry recently with this government, the

:34:31.:34:33.

cancellation of the competition to actually develop an industrhal sized

:34:34.:34:39.

test-bed to show the efficacy of this technology which would make us

:34:40.:34:46.

a world leader. I will make a little progress and then happily ghve way.

:34:47.:34:54.

When we are talking about exports, remember when the Chancellor said in

:34:55.:34:59.

his 2012 speech about acknowledging the UK's falling share of world

:35:00.:35:05.

exports, still said we wantdd to double exports to ?1 trillion this

:35:06.:35:11.

decade. Mr Speaker, total export sales in 2013 were ?521 billion A

:35:12.:35:22.

reasonable start. That fell to 13 billion in 2014. The numbers are

:35:23.:35:26.

moving in the wrong direction, yet the Chancellor and this govdrnment

:35:27.:35:31.

in this Parliament still expect us to believe exports could effectively

:35:32.:35:37.

double over that period. Indeed I think the OBR's most recent

:35:38.:35:43.

forecasts suggest we will mhss that target by around 500 and us back to

:35:44.:35:49.

?350 billion. The targets sdt are set to let -- simply unachidvable.

:35:50.:35:58.

-- miss that target by ?350 billion. The jobs of a growing number of

:35:59.:36:03.

people depend on a thriving export market. It hopes and aspirations of

:36:04.:36:06.

the people in Scotland and throughout the UK for a real,

:36:07.:36:11.

rebalanced economy must depdnd more on the rhetoric and pipe drdams of

:36:12.:36:17.

an out of touch Chancellor. But that was not the start and end of the

:36:18.:36:23.

Chancellor's and the governlent s rhetoric on exports. They ddscribed

:36:24.:36:26.

how they wanted to make the UK the best place in Europe to start and

:36:27.:36:30.

grow businesses, encourage investment and exports as a route to

:36:31.:36:34.

the more balanced economy wd want to see. He said, and I will quote, so,

:36:35.:36:41.

this is our plan for growth. We want the words made in Britain, created

:36:42.:36:46.

in Britain, designed, invented in Britain, to drive the UK for Britain

:36:47.:36:52.

carried aloft by the march of the makers, powerful words and, given

:36:53.:36:56.

the reality, no more than r`ther empty rhetoric.

:36:57.:37:02.

I am grateful to him for giving way. He is right to point out thd

:37:03.:37:08.

importance of exports, although the gap has been consistently f`lling in

:37:09.:37:12.

the last two years, but would he not agree the way to increase exports is

:37:13.:37:15.

through innovation, new technology and through investment much all of

:37:16.:37:23.

which, by being part a largdr UK through the technology strategy

:37:24.:37:26.

board he is likely to get in greater quantities than if Scotland were on

:37:27.:37:30.

its own? I agree with the honourable

:37:31.:37:35.

gentleman's assessment that we need more innovation, or exports, more

:37:36.:37:39.

technology and investment, `nd I would come to all of these things.

:37:40.:37:44.

We will have a debate he and I, the government and I come over precisely

:37:45.:37:47.

what it is the government are doing, because I think his assertion that

:37:48.:37:50.

being part of the UK will allow these things to be happening and be

:37:51.:37:59.

bigger is tenuous at best and not actually confirmed by the rdality.

:38:00.:38:03.

But back to the Chancellor's overblown march of the makers

:38:04.:38:08.

speech. If those words appe`red far-fetched when he first s`id them,

:38:09.:38:15.

they really do now in light of the reality, shallow and empty, when

:38:16.:38:20.

confronted with what is going on. I also note that this links into the

:38:21.:38:26.

intervention, that in the l`st Party, another Tory lead government

:38:27.:38:31.

released a press release about business investment, are balanced

:38:32.:38:34.

and sustainable economy, all of the things being discussed, boasted of

:38:35.:38:39.

investment into the green investment bank, another institution which we

:38:40.:38:43.

supported which we believe had and indeed did deliver support `nd

:38:44.:38:51.

growth in a new industry but which now, incredibly, has been

:38:52.:38:54.

systematically undermined bx this government. As is the commitment to

:38:55.:38:57.

the green economy generally by many of the changes which they h`ve

:38:58.:38:59.

announced since last May. one of the levers that is at the

:39:00.:39:11.

disposal of any Government of increasing exports is to

:39:12.:39:13.

aggressively push new free-trade agreements. Would you agree with the

:39:14.:39:19.

SNP have been less than fulsome in their support for free-tradd

:39:20.:39:22.

agreements around the world, particularly T10, the SNP edition is

:39:23.:39:29.

opaque at best? Desmond T10. It is not opaque. Let me be reallx clear

:39:30.:39:34.

she honourable gentleman. Wd welcome trade agreements. We think trade

:39:35.:39:38.

agreements in general are a good thing. However, we will not counter

:39:39.:39:42.

a trade agreement which opens the door to the systematic undermining

:39:43.:39:50.

of our essential public services. That was not opaque, that w`s

:39:51.:39:57.

absolutely crystal clear. Mr Speaker, we need rather mord than

:39:58.:40:03.

words from this Government. Its action that we need in order to

:40:04.:40:08.

reverse a number of the declines, particularly in manufacturing.

:40:09.:40:11.

Indeed, to ensure that what I said at the beginning and the last

:40:12.:40:15.

quarter's following manufactured output does not become a pattern.

:40:16.:40:22.

That will at least in part, and this again answers the interventhon,

:40:23.:40:27.

require more innovation. Th`t is as much a part, I've given alrdady

:40:28.:40:35.

that is as much a part of btilding a larger, more productive and faster

:40:36.:40:38.

growing manufacturing base `s it is important in its own right. And we

:40:39.:40:44.

know about the positive imp`ct from innovation from many sources, not

:40:45.:40:50.

least the recent PwC global innovation survey. It is confirmed

:40:51.:40:54.

what it described as a direct link between companies which focts on

:40:55.:40:58.

innovation and successfully grow faster. Indeed, we know what I'm

:40:59.:41:04.

sure the minister will know, the UK's most innovative companhes grew

:41:05.:41:08.

an average of 50% faster th`n the least innovative but we also know

:41:09.:41:12.

there are substantial probldms to be overcome. So while 32% of UK

:41:13.:41:21.

companies so innovation as very important, to their success, the

:41:22.:41:28.

global figure was 43%. Whild 16 of UK companies so product in division

:41:29.:41:32.

-- innovation is a priority in the coming year, that was barelx half

:41:33.:41:40.

the global figure. Most worrying the UK, Scotland and image of the UK,

:41:41.:41:43.

has a clear competitive adv`ntage in the university sector in many ways,

:41:44.:41:47.

a significantly lower proportion of our businesses land to coll`borate

:41:48.:41:51.

with academics than their international competitors. H would

:41:52.:41:56.

like to say a little on that about the approach we have taken hn

:41:57.:42:01.

Scotland specifically to de`l with that issue. There has been funding

:42:02.:42:07.

approved for five new innov`tion centres, industrial biotech and

:42:08.:42:12.

agriculture, big data and construction. That funding hs put in

:42:13.:42:16.

place to build on the original three centres launched three years ago

:42:17.:42:20.

which covered medicine, centres of imaging and digital health. Growing

:42:21.:42:27.

areas for the future. Also the provision essentially of 78 million

:42:28.:42:34.

pounds to help the developmdnt of 1000 new inventions, products or

:42:35.:42:38.

services. Cas which also, and this addresses the international

:42:39.:42:42.

comparison, which will also support 1200 businesses directly work with

:42:43.:42:50.

universities. The UK, of cotrse has Innovate UK and we have looked

:42:51.:42:55.

closely at its delivery plan and there are things which the SNP would

:42:56.:42:58.

least the 1.5 billion global challenge fund. The overall policy

:42:59.:43:06.

that sees Innovate UK's funding model being changed so that by 020

:43:07.:43:14.

165 million of innovation Grants will be delivered as loans sent out

:43:15.:43:20.

all the wrong signals and wd are concerned might suppress essential

:43:21.:43:25.

innovation compared to our international competitors even

:43:26.:43:30.

further. That was the fear confirmed by KPMG's head of small bushness

:43:31.:43:33.

accounting when he said the measure was, and I quote, "A false dconomy

:43:34.:43:39.

that threatens to store the growth of small businesses." I will happily

:43:40.:43:43.

give way. Thank you. Would he agree that it sends all the blogs that are

:43:44.:43:47.

wrong signals to companies that I think you're investing becatse what

:43:48.:43:50.

it is saying is that the future is uncertain with this Governmdnt?

:43:51.:43:56.

Indeed it does. If one looks at some of the quotes from businessds when

:43:57.:44:00.

this was announced, they were extremely clear. They are h`ppy to

:44:01.:44:05.

seek bank funding and use their own resources. When they are undertaking

:44:06.:44:10.

what might be slightly riskx innovation and are in steep, there

:44:11.:44:13.

is no expectation there might be a little help from Government. That

:44:14.:44:18.

makes it is an expectation that if that is a grant the work can

:44:19.:44:22.

proceed, the thinking can go ahead, if it's alone requiring to be repaid

:44:23.:44:28.

that might tip the balance hn favour of the risk being too great and

:44:29.:44:31.

driving down innovation even further. The reason innovathon is so

:44:32.:44:36.

vital, particularly in manufacturing, and why it's so

:44:37.:44:40.

important to encourage it, hs that over the past 20 years as it has

:44:41.:44:45.

fallen, as a share of an Sthaan van Zyl and, manufacture outputs it

:44:46.:44:53.

exports jobs and manufacturhng output have also fallen. -- as a

:44:54.:44:57.

share of manufacturing outptt. One can see the speed and length of this

:44:58.:45:03.

decline from 30% of the economy in the 1970s to less than 10% today.

:45:04.:45:11.

From more than 20% of all jobs in the 1980s to only 8% today. From a

:45:12.:45:16.

quarter of all business invdstment in the 1990s to barely 15% today. We

:45:17.:45:24.

see the reduction in global export market share, in the OBR fiscal

:45:25.:45:33.

forecast, the most recent comics should be falling throughout the

:45:34.:45:36.

forecast period to the end of this Parliament. What is more worrying,

:45:37.:45:40.

Mr Speaker, is that the figtres in the November forecast are actually

:45:41.:45:45.

marks down in every single xear from the July forecast. Everything is

:45:46.:45:51.

going in the wrong direction and complacency from the Governlent and

:45:52.:45:55.

the plan they have, the limhted plan they have in place, is simply no

:45:56.:46:01.

longer enough. That is why we now need an unrelenting focus on

:46:02.:46:07.

innovation in manufacturing, one second, English and to tradd and

:46:08.:46:11.

exports. I will give way. I'm grateful. I do welcome this debate

:46:12.:46:15.

and his focus on rebalancing the stop it a huge issue but whdn we

:46:16.:46:19.

talk about rebalancing the dconomy we have to remember that thd

:46:20.:46:21.

recession we had into thous`nd and eight because it was financhal, was

:46:22.:46:25.

inevitably followed by monetary policy eating the floor and

:46:26.:46:30.

perpetuating high house prices, all those things you want to avoid as an

:46:31.:46:34.

economics as it has met Mrs D. Does he regret the role his partx played

:46:35.:46:38.

in advising Royal Bank of Scotland to precious baby and downright usher

:46:39.:46:43.

in the financial crash to bring down are furniture giant? There hs a

:46:44.:46:51.

historic disconnect, Mr Spe`ker The fight over ABN Amro was between the

:46:52.:46:58.

board of RBS and the board of Barclays. One of them called it

:46:59.:47:02.

wrong and one of them got ltcky I suspect that my input and the input

:47:03.:47:06.

of my honourable friends had precisely no bearing whatsodver on

:47:07.:47:11.

Mr Goodman's decision to persuade his boards to buy ABN and broke

:47:12.:47:20.

Quite extraordinary. I have said we need an underwriting focus on

:47:21.:47:23.

innovation in manufacturing in relation to trade and exports

:47:24.:47:27.

because although it suffered the largest falls and because the

:47:28.:47:32.

deficit in trade in goods is so large, manufacturing still `ccounts

:47:33.:47:41.

for 44% of all UK exports. @ny Government is about rebalancing the

:47:42.:47:45.

economy correcting the tradd deficit in goods that have a laser-like

:47:46.:47:52.

focus on encouraging innovation in manufacturing as well as currently

:47:53.:47:55.

supporting existing exporting businesses. This debate is lore than

:47:56.:48:02.

just about innovation manuf`cturing and exports, it's about boosting

:48:03.:48:07.

productivity. Vital because we know, this is undisputed, both Scotland

:48:08.:48:10.

and the UK said only towards the top of the third quartile of advanced

:48:11.:48:17.

countries by GDP per hour worked. Below many smaller European

:48:18.:48:21.

countries had importantly bdlow major competitors like the TS,

:48:22.:48:28.

Germany, France and even It`ly. I am pleased that Scottish output is now

:48:29.:48:33.

4% higher than precrisis levels that is a good thing, but clearly

:48:34.:48:37.

there is substantially more to be done. Not least because we know that

:48:38.:48:41.

you keep productivity growth is now you keep productivity growth is now

:48:42.:48:46.

1.3% a year, that is barely half the level of the 2% precrisis r`te. We

:48:47.:48:52.

know in Scotland there is a plan, an know in Scotland there is a plan, an

:48:53.:48:58.

economic plan based on four principles to boost producthvity. In

:48:59.:49:00.

investment in education infrastructure, internation`lisation

:49:01.:49:04.

and encouraging exports innovation we have discussed, being essential,

:49:05.:49:10.

aspect, inclusive growth. That aspect, inclusive growth. That

:49:11.:49:16.

latter point is vital because we know from the numbers, we'vd all

:49:17.:49:20.

seen them, that the UK lost 9% of GDP growth between 1990 and 201

:49:21.:49:28.

because of rising inequalitx and we are concerned this is a mistake

:49:29.:49:34.

being repeated by this Government with its arbitrary surplus fiscal

:49:35.:49:38.

rules requiring it to cut f`r more than is necessary to run a balanced

:49:39.:49:44.

economy and undermining, diluting the Government of resources needed

:49:45.:49:50.

to tackle inequality and actually maximise economic growth. I will

:49:51.:49:56.

happily give way. I'm grateful for the honourable member giving way. He

:49:57.:50:00.

reversed with positivity to the figures in Scotland. Is he `ware

:50:01.:50:04.

that boarding to the BBC Two hours ago Scotland's economy grew slightly

:50:05.:50:07.

over the summer but continudd to lag behind UK as a whole accordhng to

:50:08.:50:14.

official figures? Absolutelx first I was describing the growth shnce the

:50:15.:50:18.

precrisis level. The court during the quarter on quarter yearly

:50:19.:50:24.

figures are undeniable. That's why all I said we all have far lore to

:50:25.:50:28.

do. I make criticisms of thd Government where they are v`lid but

:50:29.:50:31.

I will not deny the numbers. I hope the honourable lady might w`nt to

:50:32.:50:37.

welcome the fact we are now 4% ahead of precrisis levels, notwithstanding

:50:38.:50:40.

some of the difficulties we've seen in the North Sea. There is puite a

:50:41.:50:45.

remarkable achievement when all of the actions of the Scottish

:50:46.:50:48.

Government and limited powers are actually brought to bear, and in

:50:49.:50:51.

terms of the deployment of those powers, the Minister is chuntering

:50:52.:50:59.

away on the Treasury bench `s she is want to do. She will be throwing her

:51:00.:51:05.

arms in the air harrumphing she wants to intervene. I'm happy to

:51:06.:51:13.

have the debate. In terms of the powers that have been deploxed in

:51:14.:51:16.

Scotland, we also have a Scottish business pledge which requires films

:51:17.:51:25.

Comintern of Scottish agenches supports, to seek to innovate as

:51:26.:51:29.

take expert opportunities and to pay the living wage as a part of the

:51:30.:51:34.

solution to tackling inequality and delivering the inclusive growth to

:51:35.:51:40.

avoid the loss of GDP output we saw in the 20 years to 2010. Repuires

:51:41.:51:47.

firms who want Scottish agency. I would encourage them to takd a

:51:48.:51:52.

similar approach, not least because are concerned about a lack of

:51:53.:51:55.

balance and the need for action to tackle the ongoing productivity

:51:56.:52:03.

challenge is shared by the HMF, often in aid of this Governlent The

:52:04.:52:08.

IMF make the point about thd need to listen wealth inequality. They make

:52:09.:52:10.

the point about the need to have increased spending on infrastructure

:52:11.:52:16.

and they also call for enhanced focus on decentralisation. H will

:52:17.:52:22.

happily give way. I'm grateful to the honourable gentleman. Hd's

:52:23.:52:26.

making some very important points about inequality. And the ilportance

:52:27.:52:32.

that the Government does not seem to be serious about addressing

:52:33.:52:36.

sustainable inequality, thex need to be investing more on people in low

:52:37.:52:44.

income and would using the gap - reducing the gap between people of

:52:45.:52:47.

low income. Interestingly point about productivity in relathon to

:52:48.:52:53.

this. Since 2006 what has the SNP been able to do to reduce the

:52:54.:52:56.

productivity gap? I do not have a 2006 to datd figure.

:52:57.:53:12.

I will happily provide that if I can get that number. But the entire

:53:13.:53:17.

point of tackling the attainment gap, about health, investing,

:53:18.:53:22.

supporting innovation, encotraging export, supporting, promoting and

:53:23.:53:26.

helping the delivery of paylent of the living wage, everything which

:53:27.:53:29.

can be done is being done and must be done, because it is all part of a

:53:30.:53:36.

project of lessening inequality to deliver precisely the inclusive

:53:37.:53:40.

growth that avoids the shortfall in economic growth which we have seen

:53:41.:53:46.

by the UK Government. I was making the point about some of the demand

:53:47.:53:49.

is by the IMF, and one of those was the enhanced focus on

:53:50.:53:54.

decentralisation. It is somdthing which is vital if we are to

:53:55.:53:59.

effectively use all the tools at our disposal to tackle the economic

:54:00.:54:04.

challenges we face. Let me give one example. Research and development

:54:05.:54:08.

tax credits to support innovation are a function of corporation tax,

:54:09.:54:11.

but as corporation tax is not devolved to Scotland one of the most

:54:12.:54:17.

important tools to help support that research is actually denied to the

:54:18.:54:19.

Scottish Government in their efforts to build on the work alreadx being

:54:20.:54:26.

put in place. That, frankly, in terms of the challenges we `ll face,

:54:27.:54:31.

is illogical. I will give w`y on that point.

:54:32.:54:35.

I am grateful to him for giving way, and he is right to highlight the

:54:36.:54:42.

role that devolved instituthons can play in helping to boost

:54:43.:54:45.

productivity. Can I comment to him the work of the greater Manchester

:54:46.:54:49.

combined authority, who in their new devolved functions have awarded

:54:50.:54:57.

funding to an English firm to be able to open a ?5.8 million cotton

:54:58.:55:03.

mill in my constituency, thd first cotton mill to open in greater

:55:04.:55:08.

Manchester for over 40 years? I welcome that intervention. I

:55:09.:55:11.

welcome that no, I hope it hs important point. There is no point

:55:12.:55:22.

in devolving powers, whether it is to Northern Ireland, Scotland,

:55:23.:55:25.

Wales, or anywhere else, thdre is no point devolving responsibilhties

:55:26.:55:31.

unless the funding and the `bility and authority to raise the cash goes

:55:32.:55:35.

with it. That is the weakness in some of the asymmetric devolution

:55:36.:55:41.

this government has put in place. However, the government we believe

:55:42.:55:48.

should look again at its decision to replace 165 million of innovation

:55:49.:55:50.

grants with loans. We believe it should deliver real devoluthon, not

:55:51.:55:56.

least of corporation tax and its associated credits, so thosd tools

:55:57.:56:02.

are able and available to all of the devolved administrations to maximise

:56:03.:56:07.

R support. I will give wax. While he is on the subject of

:56:08.:56:09.

Northern Ireland, we now have record Northern Ireland, we now have record

:56:10.:56:12.

employment here. We have higher levels of

:56:13.:56:16.

international development and investment than at any other time in

:56:17.:56:20.

history. Having a strong devolved aspect of trade investment helps

:56:21.:56:26.

competitiveness of the UK rdgions competitiveness of the UK rdgions

:56:27.:56:32.

and in particular Northern Hreland. Absolutely, the more we can devolve,

:56:33.:56:35.

not just authority but real power, the more people on the ground can do

:56:36.:56:39.

that, it is self-evidently the case. Your talk of record on clim`te is

:56:40.:56:44.

good, I think there is near record employment almost everywherd. The

:56:45.:56:48.

issue is not flat. The issud is that real term wages have fallen and

:56:49.:56:52.

remain five points lower th`n precrisis. If we are to drag living

:56:53.:56:57.

these things as well, but in general these things as well, but in general

:56:58.:57:01.

terms the devolution of real power is absolutely right. The government

:57:02.:57:08.

should recognise in terms of these elements of transferring power,

:57:09.:57:13.

there requires a comprehenshve solution to productivity in covering

:57:14.:57:19.

investment, infrastructure, internationalisation, innov`tion and

:57:20.:57:21.

the policies to deliver inclusive growth. They should recognise that

:57:22.:57:27.

the rebalancing of the economy needs a focus, not just on London versus

:57:28.:57:31.

the rest of the UK, but on the growth benefits from those firms and

:57:32.:57:36.

the whole economy which export and innovate and support more of them to

:57:37.:57:41.

do so. And that that focus should be heavily weighted to manufacturing,

:57:42.:57:48.

because the falling R, exports and output from that sector cannot be

:57:49.:57:55.

allowed to continue. Above `ll, while we believe in a setting

:57:56.:57:59.

ambitious targets, setting unrealistic and unachievabld export

:58:00.:58:02.

targets which fly in the face of reality will simply weakened this

:58:03.:58:06.

government's credibility in exactly the same way that failing to meet

:58:07.:58:11.

the debt deficit and borrowhng targets did in the last Parliament.

:58:12.:58:17.

To set a target of doubling exports without the means being put in place

:58:18.:58:21.

to deliver that is bad economics and bad politics. I will turn briefly

:58:22.:58:29.

to... I will not give way. To what the government have actuallx said in

:58:30.:58:33.

this Parliament. The published in July fixing the foundations, a

:58:34.:58:38.

document is supposed to covdr many of the areas which were discussing

:58:39.:58:43.

today. It is very thin, Mad`m Deputy Speaker. Their approach to raising

:58:44.:58:51.

productivity is covered by two Dilip points, a paragraph and a lhttle

:58:52.:58:54.

chart. Their section on long-term investment merely confirms that

:58:55.:59:00.

long-term investment, going back as far as the 1960s, has bouncdd along

:59:01.:59:07.

the bottom of the OECD aver`ge, that is the 10th to 90th percenthle for

:59:08.:59:12.

those who care about these things, hit the average for one year around

:59:13.:59:18.

1990, and has actually falldn off the bottom of that for many years

:59:19.:59:23.

since. On investment it is primarily around transport. I welcome

:59:24.:59:29.

transport investment, I welcome capital investment and the hncrease

:59:30.:59:31.

in capital investment in thd summer Budget, but let us be under no

:59:32.:59:36.

illusions, that change only came about after the government were

:59:37.:59:39.

found out cutting capital spending for every single year of thd

:59:40.:59:42.

forecast period in the spring Budget. They have the audachty in

:59:43.:59:47.

the Fixing the Foundations report to talk about reliable low carbon

:59:48.:59:54.

energy at a price we can afford while systematically undermhning the

:59:55.:59:57.

sector and the green investlent bank itself. On innovation and industry,

:59:58.:00:04.

which is at the heart of thd solution to a long-term problem we

:00:05.:00:10.

have three small paragraphs. What this document does, however, I am

:00:11.:00:16.

sorry if the Minister is slhghtly bored hearing about our govdrnment's

:00:17.:00:28.

failings, it mentions the trillion of exports by 2020. It shows are

:00:29.:00:33.

moderates rise in exports to the rest of the world and the

:00:34.:00:40.

catastrophic decline... The Minister is shaking his head. The

:00:41.:00:44.

catastrophic decline in exports to the richest OECD countries,

:00:45.:00:48.

published by the government in this Parliament. A sense of realhty is

:00:49.:00:51.

probably a rather good starting point for debate. Madam Deptty

:00:52.:00:58.

Speaker, each of the areas we have started to discuss today cotld form

:00:59.:01:03.

a debate in their own right. We believe this motion is a st`rting

:01:04.:01:08.

point to properly begin to understand and address UK Government

:01:09.:01:16.

policy weakness in the area is - areas of trade, exports,

:01:17.:01:18.

productivity and innovation and the fundamental rebalancing of the

:01:19.:01:21.

economy and I commend the motion to the house.

:01:22.:01:23.

As many as are of the opinion, say "aye". To the contrary,

:01:24.:01:28.

-- the question is as on thd order paper. Minister.

:01:29.:01:33.

I am very grateful to have the opportunity to come and deb`te and

:01:34.:01:36.

number of the government's key economic priorities here today. Can

:01:37.:01:43.

I begin by singing fulsome praise of my Cabinet colleague the Secretary

:01:44.:01:48.

of State for Scotland? Not only is he outstanding as Secretary of State

:01:49.:01:53.

for Scotland, but today he lade a very important announcement about

:01:54.:02:00.

what in many ways it should be said should be his private life but it is

:02:01.:02:04.

not it is in the public dom`in. It took huge coverage and I can say

:02:05.:02:10.

that I am hugely proud to sht in the cabinet with him, and I can see all

:02:11.:02:13.

of the nods on both sides, `ll around this chamber, in support of

:02:14.:02:18.

our Secretary of State at what may be a difficult time for manx. I am

:02:19.:02:22.

sure for him it is a very h`ppy day that finally he can be the person,

:02:23.:02:27.

the man he has always been `nd the tensing out and be proud of being

:02:28.:02:31.

that man. I want to pay tribute to him and I am pleased we all agree.

:02:32.:02:35.

Madam Deputy is bigger, it hs absolutely right that the Sox as

:02:36.:02:40.

micro-Scottish Secretary's Cabinet colleague announces this in the

:02:41.:02:44.

chamber. I think that is appropriate. I think on our side we

:02:45.:02:47.

would like to welcome what was said. However, in terms of the debate and

:02:48.:02:52.

we still say, notwithstanding that we hope he is happy, we

:02:53.:02:56.

fundamentally disagree with his politics.

:02:57.:02:59.

I took that as a red, actually, and I put on record that I know the

:03:00.:03:02.

First Minister for Scotland has also tweeted her support. Franklx I am

:03:03.:03:07.

not surprised. In this day `nd age I think most people shrug thehr

:03:08.:03:12.

shoulders and say, yes, whatever, I bothered? Of course we are not. But

:03:13.:03:16.

we can celebrate what should be a happy day for him. Anyway, let's get

:03:17.:03:20.

on to this debate will stop the motion before us refers to the

:03:21.:03:24.

United Kingdom economy, economic growth and I wish, if I may, to take

:03:25.:03:29.

a very quick trip down memory lane to set this debate in some context,

:03:30.:03:34.

because it is important. Thd honourable gentleman, the mdmber for

:03:35.:03:38.

Dundee East, has talked abott this government's record. I wantdd to

:03:39.:03:41.

talk about the last six or seven months and the previous fivd years,

:03:42.:03:45.

notably to remind everyone of the situation that we faced out in May

:03:46.:03:51.

2010, because at that time ht is important to remind everybody we

:03:52.:03:57.

were in the worst recession our nation had faced for 100 ye`rs. The

:03:58.:04:03.

biggest Budget deficit in otr peacetime history, over 500,000 more

:04:04.:04:09.

people on the dole, and that was a situation that we on this shde of

:04:10.:04:13.

the house, frankly, were left to pick up. An economy brought to its

:04:14.:04:17.

knees, almost on the brink of bankruptcy from lands end rhght the

:04:18.:04:23.

way up to John O'Groats, from London to Inverness, all across our nation

:04:24.:04:30.

we saw a country that was on its knees. To save us from that economic

:04:31.:04:36.

mire, we had to take some dhfficult decisions to control spending,

:04:37.:04:39.

reduce the deficit, to rescte our economy. Those decisions, every

:04:40.:04:45.

single one of them, were opposed by parties sitting opposite notably the

:04:46.:04:51.

opposition and indeed the Scottish National Party. Each and evdry

:04:52.:04:56.

decision was opposed, and how wrong they were. But it is thanks to the

:04:57.:05:02.

hard work of the British people that are economic plan has worked and it

:05:03.:05:07.

continues to work. The deficit is down by more than half, there are

:05:08.:05:14.

over 2.2 million more peopld now in work, and there are over 900,00

:05:15.:05:20.

more businesses. The United Kingdom has been the fastest-growing economy

:05:21.:05:25.

in the advanced world and that is a record that I and other members on

:05:26.:05:34.

this side of the house are proud of. In Scotland -- Scotland has been

:05:35.:05:38.

part of that success story. It is unfortunate that the honour`ble

:05:39.:05:40.

gentleman who represents Dundee East has just given us this long speech

:05:41.:05:45.

about all of the doom and gloom and all of the stuff trotting ott this,

:05:46.:05:50.

that and the other, talking down our economy, talking only Scotthsh

:05:51.:05:55.

economy which is part of thd United Kingdom. That is wrong, and that is

:05:56.:05:59.

sad, because there is a success story. I will give way. Isn't it

:06:00.:06:07.

also interesting that in ovdr half an hour the SNP sports person

:06:08.:06:10.

talking about trade, export, innovation and productivity

:06:11.:06:14.

mentioned not once free markets Not once entrepreneurship? Not once

:06:15.:06:20.

the power of the regulation Gretchen mac isn't it this government does

:06:21.:06:24.

make a priority to focus on those issues to achieve the goals were set

:06:25.:06:27.

in? I could not agree with him more. I did notice there was a lot of

:06:28.:06:33.

moaning and containing but there were no solutions, ideas of fresh

:06:34.:06:37.

ways of thinking. Not one it was all doom and gloom and talking down our

:06:38.:06:42.

economy. I thank the Ministdr. In her history lesson about thd

:06:43.:06:47.

long-term economic plan, whhch plan is she referring to? The ond from

:06:48.:06:53.

the first two years, when the Chancellor was desperately trying to

:06:54.:06:56.

reduce public spending? On the one that followed the first two years

:06:57.:07:01.

when he listened to this side of the house and actually loosened up on

:07:02.:07:03.

public spending with the result of the economy then starting to grow?

:07:04.:07:08.

I am sorry the honourable gdntleman did not hear it. I am referring to

:07:09.:07:11.

the long-term economic plan that delivered a deficit down by more

:07:12.:07:17.

than half, 2.2 million more people in work, 900,000 more busindsses and

:07:18.:07:21.

our long-term economic plan that made of this country the

:07:22.:07:24.

fastest-growing economy in the advanced world. That is what I am

:07:25.:07:29.

referring to and I do so with pride. Scotland has been part of that

:07:30.:07:35.

success story. Since 2010, 070 000 people are worked in Scotland more.

:07:36.:07:41.

-- 178,000 more people in Scotland are at work. This has been `

:07:42.:07:46.

recovery based on private sdctor growth and employment and lhving

:07:47.:07:51.

within our means. Of the Scottish National Party 's and the L`bour

:07:52.:07:55.

Party are wedded to abandonhng fiscal responsibility and pttting

:07:56.:08:00.

our economic security at risk. On the side of the house we know the

:08:01.:08:04.

job is not done. We know we have do oppose those opposite who would

:08:05.:08:08.

return to the bad old ways `nd days of spending beyond our means. We

:08:09.:08:13.

know that to lock in our future economic security and prospdrity we

:08:14.:08:16.

need our businesses to incrdase exports, boost productivity and

:08:17.:08:21.

continue to innovate to stax ahead. We believe in cutting red t`pe, as

:08:22.:08:26.

the honourable gentleman my friend for Bedford has told us. We believe

:08:27.:08:30.

in all of those good strong parts of our free economy which does not

:08:31.:08:34.

believe in overregulating pdople that allows businesses to gdt on and

:08:35.:08:38.

do business, the thing that they know best. That does not me`n to say

:08:39.:08:42.

I am some ideologue, that is wedded to some free market without any

:08:43.:08:49.

constraint at all. Of coursd not. I am a caring, compassionate

:08:50.:08:52.

conservative. I don't believe in monopolies, I believe in

:08:53.:08:55.

responsibility and all of those that do business, and that is whx I am so

:08:56.:08:58.

proud that it is this government ringing forward the living wage the

:08:59.:09:02.

way that we have done. This is a true benefit to workers across our

:09:03.:09:09.

country, especially the lowdst paid. I am tired of that. I will give way.

:09:10.:09:16.

-- I am proud of that. But she also agree that on the side

:09:17.:09:19.

of the house we are equally committed to encouraging those first

:09:20.:09:24.

time entrepreneurs, first-thme employers and exporters to be able

:09:25.:09:29.

to do those things perhaps their parents had them done beford? We are

:09:30.:09:36.

also encouraging social mobhlity. Absolutely. Of course small

:09:37.:09:39.

businesses and new businessds, start-ups and as a scalar, `nd the

:09:40.:09:43.

heart of everything we seem to achieve because we understand the

:09:44.:09:47.

value. It takes great courage. Start their own business. We do what began

:09:48.:09:50.

to start-up loans to assist them and we now have at a local level by

:09:51.:09:56.

devolving through with the business growth pubs and the other mdasures

:09:57.:10:00.

were put in place rice ten `t a local level to make sure th`t people

:10:01.:10:03.

are in a position whereby there is help, assistance and advice to them

:10:04.:10:06.

as they start-up their business and begin to grow. We've made stre in

:10:07.:10:15.

particular we may do the right thing by decreasing the regulatorx burden

:10:16.:10:18.

that we've achieved a lot in the last five years and we have more to

:10:19.:10:21.

achieve. It will be tough btt we are determined to do that. Therd is

:10:22.:10:26.

another important point you make, it is often starting up your own

:10:27.:10:32.

business that is a great wax for somebody absolutely to shakd off

:10:33.:10:36.

their past, some of the things in their background they have held or

:10:37.:10:40.

are in danger of folding thdm back and to advance in the way that we

:10:41.:10:45.

want people to do. That is what brought people like me into

:10:46.:10:49.

politics. A desire to make the lives of everybody, especially those from

:10:50.:10:52.

the less advantaged families and backgrounds, make their livds

:10:53.:10:58.

batter. -- better. I believd these economic policy we have we will

:10:59.:11:03.

continue and achieve exactlx that. I had and eight BG speaker, character

:11:04.:11:07.

and to treat. I was going to give lady at -- give way over thdre.

:11:08.:11:10.

Thank you. I'm glad she had not forgotten about me. She agrde there

:11:11.:11:15.

is no comfort for workers under the age of 25 in this new minimtm wage

:11:16.:11:20.

because they will not qualify for? They will languish in wages of about

:11:21.:11:25.

?3 87 per hour, which is not good enough? Can I just say I thhnk it's

:11:26.:11:29.

very interesting the number of companies who are into juichng the

:11:30.:11:32.

new living wage irrespectivd of the age of their employees? -- hnto

:11:33.:11:38.

juicing that I welcome that, but every good thing we do, we have to

:11:39.:11:41.

have someone who comes along and Knox is and always want somdthing

:11:42.:11:45.

more. There is nothing wrong with wanting more, but give credht where

:11:46.:11:50.

credit is due. This is a huge achievement that I'm proud `s a

:11:51.:11:53.

Conservative Party to do it. I have to say, I got to say this, H really

:11:54.:11:59.

do struggle with having lessons on the economy from the Scottish

:12:00.:12:05.

National Party. This is a p`rty that built its entire idea of

:12:06.:12:07.

independence, which mercifully the good people of Scotland rejdcted, on

:12:08.:12:11.

the fact they thought that oil was going to be the foundation of their

:12:12.:12:19.

independent economy. Goodness me, we're now in a position where oil is

:12:20.:12:25.

$35 a barrel and its acceptdd that the cost, if they had been

:12:26.:12:28.

successful, would have been somewhere in the region of ?5,0 0 to

:12:29.:12:33.

every single household. Scotland would have been in the most

:12:34.:12:39.

atrocious economic place if it had voted for independence. As H say,

:12:40.:12:43.

thank goodness the good people of Scotland to the wise decision that

:12:44.:12:47.

we were undoubtedly better together. It is really difficult for le to

:12:48.:12:50.

take lessons from this ragt`g and bobtail of the SNP that encompasses

:12:51.:12:56.

everything from Tartan Torids, right across Tartan trots. It really will

:12:57.:13:03.

be very interesting as the Smith report, and I will give way in a

:13:04.:13:07.

moment. I'm on a roll. And he's got the bill comes into power, they will

:13:08.:13:12.

finally have the powers thex seek, the most devolved Government, in a

:13:13.:13:16.

moment, the most of devolved Government in the world and then

:13:17.:13:19.

they will have responsibility and then we will see whether thdy will

:13:20.:13:22.

be able to deliver. I would bet good money they will not be able to. The

:13:23.:13:29.

lady first, then the gentlelan. I'm grateful to the Minister for giving

:13:30.:13:35.

way. Very interesting speech she is making. I must challenge her on the

:13:36.:13:39.

point she has made about thhs flailing economy. The Government was

:13:40.:13:48.

meant to have eradicated thd debt by 2015. They have only half d`te and

:13:49.:13:55.

you borrowed 73 and a half billion pounds this year. You were leant to

:13:56.:13:58.

have eradicated it. You're obviously playing a positive spin on this

:13:59.:14:05.

economic plan. Let's see how long it lasts. I think the Government have

:14:06.:14:10.

been giving warning signs that may not last. Can I ask, based on what

:14:11.:14:14.

the honourable gentleman was saying, the IMF has said if you mess war in

:14:15.:14:20.

the 20% on the lowest incomds you will buy -- boost economic growth. A

:14:21.:14:24.

much interest. Something thd Government has failed to default on

:14:25.:14:27.

why have you not done this? Can I say to be honourable lady fhrst the

:14:28.:14:31.

IMF has been awesome in its praise of our economic plan and its

:14:32.:14:35.

successors, really, much as I may like the honourable lady on a

:14:36.:14:38.

personal level, I'm going to struggle to take lessons. The last

:14:39.:14:42.

Labour Government doubled ddbt and we have only half the deficht. I'm

:14:43.:14:47.

proud of all the huffing it but you can see in her words, we sed the

:14:48.:14:53.

absolute, the poor old Labotr Party and learn from the mistakes of the

:14:54.:14:59.

past. Under its currently to ship, goodness knows the route it is now

:15:00.:15:03.

embarking upon the middle is set in opposition for a long time. Can she

:15:04.:15:08.

answer one question, has debt under this Government? Debt has gone up.

:15:09.:15:16.

That is all right. It's not about scoring cheap political points, as

:15:17.:15:21.

the honourable gentleman knows. Obviously I would never eng`ge in

:15:22.:15:24.

such work. The honourable gdntleman cannot deny 2 million more people in

:15:25.:15:32.

work, this is part of the proud record and he should be prahsing

:15:33.:15:35.

that. The Labour Party would do well, actually, when we do the right

:15:36.:15:40.

thing, over 2 million more people in work, why cannot give the honourable

:15:41.:15:44.

gentleman give praise where praise should be given? Yes. It allost took

:15:45.:15:49.

the Minister 12 minutes to revert to type. Ragtag and bobtail if she

:15:50.:15:54.

likes, that is nothing comp`red to the way the Scottish people describe

:15:55.:16:00.

her party. If we can clear tp one little fact on the oil pricd, I

:16:01.:16:04.

thought the Minister might raise it, yes we did say it would be $110 a

:16:05.:16:11.

barrel, that is correct, can we be absolutely clear that the UK

:16:12.:16:16.

Government's on Department for energy and climate change at the

:16:17.:16:20.

barrel price at between 114 and a a barrel and that at the very least

:16:21.:16:25.

admits the UK Government got it wrong. The point is the honourable

:16:26.:16:32.

gentleman and his party werd basing the whole of Scotland's economic

:16:33.:16:39.

future on oil. How mad was that I will make some progress. Hang on. I

:16:40.:16:43.

will give way in a moment. H want to do this piece on trade in exports

:16:44.:16:46.

because I think it's really important in considering tr`de and

:16:47.:16:49.

export otherwise I will be speaking for far too long and mad Dave Gisby

:16:50.:16:55.

can will monitor me. We also recall the importance of the best kingdom's

:16:56.:16:58.

largest domestic market and the benefits it brings. The rest of the

:16:59.:17:07.

UK is going to beat Scotland's best economic partner. 73% of Scots

:17:08.:17:10.

exports go to the rest of Uganda biggest threat is the party opposite

:17:11.:17:14.

that would put barriers between Scotland and the rest of thd UK

:17:15.:17:21.

Trading experts are a key element of June to go view the buzz on the

:17:22.:17:23.

economy and White discovered is committed to heat easier for copies

:17:24.:17:29.

to export. We provide wanting to export to the UK and we want to work

:17:30.:17:34.

with other governments to rdduce barriers to trade. Our tradd net --

:17:35.:17:39.

deficit narrowed by 0.3 billion in the last three months to November

:17:40.:17:42.

and the number of copies exporting in both the UK and Scotland is up

:17:43.:17:47.

since 2010. Of course, we know we have a lot further to go. Ddlivering

:17:48.:17:53.

on all of the EU's trade negotiations could add ?20 billion

:17:54.:17:57.

to the UK economically each year. We know that trade agreements work In

:17:58.:18:03.

the four years since the EU career arrangement agreement came hnto

:18:04.:18:07.

force, the value of UK exports has more than doubled. We have seen a

:18:08.:18:11.

1000% increase in the value of jet engine sales. The UK sold jtst 215

:18:12.:18:17.

cars to Korea in the final xear before the FTA was agreed. Last year

:18:18.:18:24.

the number reached 13300 and 37 It is not just the big companids that

:18:25.:18:27.

benefit. There is a Scottish business that was able to sdll

:18:28.:18:32.

100,000 jars of jam in Kore` last year after the FTA slashed hmport

:18:33.:18:37.

duties and that is why this Government is committed to

:18:38.:18:41.

delivering freer global trade concluding major trade deals with

:18:42.:18:45.

the US, Japan and many other trading partners and that, of coursd, will

:18:46.:18:57.

bring me to tTip. In the last session I was responding to the

:18:58.:19:00.

debate on teeter and I will not repeat all of the things I said in

:19:01.:19:05.

that debate. But it really hs disingenuous of the party opposite

:19:06.:19:10.

in this direction, and indedd in that direction as well, to oppose

:19:11.:19:17.

TTIP on the three false prelise it would threaten our public sdrvices

:19:18.:19:20.

and in particular the NHS. Ht is not true. As a deputy Speaker, there are

:19:21.:19:27.

so many letters by way of example, the letter which one of the

:19:28.:19:32.

honourable members in that debate will remember the letter wrhtten in

:19:33.:19:36.

December 14 from the users of agree to be chair of the health sdlect

:19:37.:19:40.

committee who ask specific puestions about whether TTIP undermindd or

:19:41.:19:45.

posed any threat to our NHS and the answer was overwhelmingly come every

:19:46.:19:50.

time, no. Everybody that cotld have said there is no threat frol TTIP to

:19:51.:19:57.

any of our public services, especially and in particular the

:19:58.:20:03.

NHS, that, people said over`ll turnover is much over and over again

:20:04.:20:07.

and it's grossly unfortunatd the members opposite and parties op

:20:08.:20:11.

Cit. Peddle these untruths `bout TTIP. It is simply not right and

:20:12.:20:16.

fair to mislead people as they are. I will give way. I'm grateftl to the

:20:17.:20:21.

Minister. There seems to be some ambiguity around this. At ldast

:20:22.:20:25.

let's committee we have different evidence on that same compldtely the

:20:26.:20:31.

opposite, in view of the ambiguity, why doesn't she really issud as

:20:32.:20:34.

complete and save the NHS whll be exempt from TTIP in negotiations? I

:20:35.:20:40.

don't know how many times I will send all of the information to the

:20:41.:20:43.

honourable lady that will s`y all of these things and make it absolutely

:20:44.:20:48.

clear that TTIP is not a threat to our public services and is not a

:20:49.:20:52.

threat to our NHS. On the contrary, it will deliver billions of pounds

:20:53.:20:59.

of wealth to our economy because it will free up trade between ourselves

:21:00.:21:03.

and the USA. I think honour`ble members opposite have got to be

:21:04.:21:07.

honest about it. I think thd real problem is they are pages against

:21:08.:21:14.

the USA. -- is their prejudhce. Be honest because they are putting up

:21:15.:21:20.

bogeys that do not exist. I thank the Minister forgiving way. If I

:21:21.:21:23.

might return to the oil price and the sheer joy expressed by lembers

:21:24.:21:28.

in this chamber at the coll`pse in the oil price, I look at thd man

:21:29.:21:32.

sitting directly behind the Minister for the joy and delight on his face.

:21:33.:21:40.

In the real world come in the consistency I represent, jobs are

:21:41.:21:42.

being lost. The Minister has expressed her delight at thd fact

:21:43.:21:46.

that Scotland's state in thd union, can she explained that the tnion is

:21:47.:21:51.

doing dealt Scotland in his moment of need? Is not for me to speak of

:21:52.:21:56.

others but I can assure you there was no joy at the falling ohl price

:21:57.:22:00.

on this site. The joy, I wotld like to think, was in the point that I

:22:01.:22:04.

made and made it rather well, to say that the honourable gentlem`n is in

:22:05.:22:06.

the point that I made and m`de it rather well, to say that thd

:22:07.:22:09.

honourable gentleman is a p`rty that all its faith in the oil prhce as

:22:10.:22:12.

this are they shot their economy and they were absolutely wrong. I don't

:22:13.:22:17.

know the constituency, forghve me, I suspect it is in the north-dast of

:22:18.:22:23.

Scotland? He makes a good point and this is the only good point. He

:22:24.:22:28.

makes a good point about thd concerns we have both the ftture of

:22:29.:22:31.

the oil and gas industry, btt the oil industry in particular hn the

:22:32.:22:37.

North is of Scotland. Unaware of the redundancies announced yestdrday by

:22:38.:22:40.

BP and I would agree, there is much we can do. Note the week. It would

:22:41.:22:44.

be good for the British Govdrnment to work with the Scottish Government

:22:45.:22:46.

to make sure that we do all we can. We have a fantastic oil indtstry

:22:47.:22:56.

based in Aberdeen largely, one of the finest in the world, and there

:22:57.:23:00.

is much we can do working together to make sure we don't see ftrther

:23:01.:23:05.

job losses, especially how we have seen. It is helpful what shd has

:23:06.:23:11.

just said but she has twice now made the incorrect and false assdrtion

:23:12.:23:16.

that we base any forecast only on oil, that was never true. The

:23:17.:23:21.

Minister has accused others of misleading the public over the

:23:22.:23:24.

approach to TTIP. I hope shd doesn't want to mislead the public over a

:23:25.:23:31.

recession on the economy behng based solely on one industry. I whll give

:23:32.:23:41.

away. It is a fair challengd to remind the government how ilportant

:23:42.:23:51.

the oral industry is to our country. -- the oil industry. I am stre the

:23:52.:23:57.

Minister hopes that the benches opposite will support that. I can't

:23:58.:24:03.

add anything to that, except to say it was an extremely good pohnt well

:24:04.:24:07.

made. Madam Deputy Speaker, can I move onto productivity, which is

:24:08.:24:10.

obviously incredibly import`nt. Delivering a return to it is one of

:24:11.:24:16.

the key economic challenges to this parliament, and a route to lay -

:24:17.:24:19.

raising living standards for everyone in the UK. We have lacked

:24:20.:24:22.

behind other major economies, let's be honest, for decades. Productivity

:24:23.:24:29.

in Scotland is still 2.5% bdlow the United Kingdom average. It hs why we

:24:30.:24:33.

are determined to fix it, and so I won't pretend there are any

:24:34.:24:36.

short-term measures, this whll take some time and it will take ` lot of

:24:37.:24:40.

hard work. But in the summer budget last year, the Chancellor sdt out

:24:41.:24:44.

the government's ambitious plan fixing the foundations and creating

:24:45.:24:47.

a more prosperous nation, and it ensures we are doing everything

:24:48.:24:51.

possible to deliver higher levels of productivity in the UK. Skills and

:24:52.:24:55.

education are key to improvhng productivity, and we have invested

:24:56.:25:00.

in skills, delivering 2 million apprenticeships in the last

:25:01.:25:05.

Parliament, and our reforms in education are already raising

:25:06.:25:10.

standards. Unfortunately, under the SNP, standards of numeracy `nd

:25:11.:25:13.

literacy in Scotland have bden falling, and fewer Scotland's more

:25:14.:25:19.

deprived children attend a university than in any other part of

:25:20.:25:24.

the United Kingdom. Just 10.3% of the poorest 20% of Scots attend

:25:25.:25:29.

university, versus 18.1% in England, 16.3% in Wales and 16.3% in Northern

:25:30.:25:36.

Ireland. We have also protected science spending, ?4.7 billhon per

:25:37.:25:44.

year in resorts, and ?6.9 bhllion in infrastructure to 2021. And we

:25:45.:25:48.

continue to invest in our c`tapult centres. We are delivering one of

:25:49.:25:51.

the largest and most ambitious infrastructure programmes in recent

:25:52.:25:57.

Emery, with projects such as HS , which is something I absolutely have

:25:58.:26:00.

no doubt everybody should b`ck, it would bring huge benefit to our

:26:01.:26:03.

country, and if I just quickly say especially to my constituency as we

:26:04.:26:11.

hope to have the East Midlands hub in Totem, and of course Crossrail,

:26:12.:26:15.

which has been a huge project across the capital, and of course the

:26:16.:26:19.

largest investment as we sed it in our roads since the 1970s. So we are

:26:20.:26:23.

beginning to see signs of improvement. Output per hour group

:26:24.:26:29.

by 5% of the third quarter of 2 15 compared to the previous, and was

:26:30.:26:33.

1.3% higher than the same pdriod in 2014. UK productivity has exceeded

:26:34.:26:42.

its previous peak by 0.7%. Let me doing this and then I will give way

:26:43.:26:46.

to the Honourable lady, but she has had two minutes, I just want to make

:26:47.:26:49.

some progress. Alongside tr`de, innovation is another pillar on

:26:50.:26:54.

which our economy is built. It is also an important lever for

:26:55.:26:57.

increasing productivity. Thd excellent work of my colleague, the

:26:58.:27:01.

science minister, has ensurdd science spending is protectdd in

:27:02.:27:04.

real terms, with record levdls of investment across the UK. ?4.7

:27:05.:27:12.

billion per year, resource funding, rising with inflation, a record

:27:13.:27:15.

investment in our country's scientific infrastructure at ?6 9

:27:16.:27:21.

billion to 2021. And that the government will be protecting all of

:27:22.:27:26.

that in cash terms. Total spending on business led innovation through

:27:27.:27:30.

Innovate UK. We recognise access to finance remains an important

:27:31.:27:33.

challenge for innovative enterprises, which is why wd are

:27:34.:27:37.

committed to introducing new types of finance products to support

:27:38.:27:40.

companies to innovate. New products, such as loans, will replace some

:27:41.:27:50.

existing Innovate UK grants and will reach ?165 million by 2019. In 014

:27:51.:27:55.

alone, more than ?2 billion was raised in venture capital in the

:27:56.:27:59.

United Kingdom, that was up 50% from the previous year. I see no reason

:28:00.:28:04.

why the United Kingdom can't be the's number one destination for

:28:05.:28:09.

innovation and finance. I understand why the government may wish to

:28:10.:28:13.

change the way in which somd of the foreign deals are financed, but

:28:14.:28:17.

would she accept that given the long lead-in time from any development

:28:18.:28:22.

projects that loans are not appropriate and will even ldad to

:28:23.:28:26.

innovation and research going outside the United Kingdom, while

:28:27.:28:32.

stopping altogether? If if H may say, we are taking time to bring

:28:33.:28:36.

them in, and of course it is a mix, and in some instances it is

:28:37.:28:40.

absolutely the right thing to do. That is why in other instances it

:28:41.:28:44.

might be that we give a grant. I think the flexibility is thd right

:28:45.:28:47.

way to approach it, because it means we can put the money that wd need

:28:48.:28:51.

to, even in these difficult times, and I think we are doing at the

:28:52.:28:54.

right thing, yes of course H will give way. Thank you for givhng way.

:28:55.:29:02.

The report on productivity by the FSB identified late payments to

:29:03.:29:09.

small businesses as one of the important ones. Would you admit it

:29:10.:29:18.

is a key issue? I know therd is a good argument in favour, but we are

:29:19.:29:22.

having a consultation of it. As the honourable lady knows my door is

:29:23.:29:24.

open on this one, I am more than happy to have a discussion with her

:29:25.:29:28.

because I know there is a powerful argument in favour. Strong `rguments

:29:29.:29:32.

against it, but we are having a consultation, so maybe we could make

:29:33.:29:35.

some progress on that and in deed and must make some progress on my

:29:36.:29:40.

speech. But first I give wax to the honourable gentleman. Thank you Is

:29:41.:29:45.

the Minister aware that yesterday the medical research council issued

:29:46.:29:52.

that paper regarding the move from grants to loans, in which it said

:29:53.:29:56.

the biomedical catalyst may not continue? I am not going to pretend

:29:57.:30:01.

I haven't seen that paper, but I would think it is really important

:30:02.:30:06.

not to comment on things yot haven't read and don't comment on things

:30:07.:30:08.

that have been taken out of context. It maybe

:30:09.:30:16.

one of the changes the Treasury has made is to enable ISAs to bd used to

:30:17.:30:24.

enable peer-to-peer lending. Will the Minister have words with her

:30:25.:30:33.

colleagues to make equity p`yments to pervert companies. The answer is

:30:34.:30:41.

simply yes. This government continues to encourage business

:30:42.:30:48.

investment. Through tax incdntives. Take-up of the scheme continues to

:30:49.:30:52.

grow. We have 18,200 companhes claiming one point -- ?175 billion

:30:53.:31:00.

of relief from ?14.3 billion of innovative investment. In Scotland,

:31:01.:31:06.

there were 1045 claims giving a total relief of ?55 million. That

:31:07.:31:12.

means more investment in research and development, and more hhgh-value

:31:13.:31:17.

jobs and greater productivity. The government is also continuing to

:31:18.:31:20.

invest in our catapult network and the first seven catapults are now

:31:21.:31:24.

operating from the established facilities with total public and

:31:25.:31:30.

private investment exceeding ?1 6 billion over the first five years of

:31:31.:31:34.

operation, including offshore renewable energy in Glasgow, the

:31:35.:31:38.

advance forming research Centre in Strathclyde, part of the high value

:31:39.:31:42.

in manufacturing catapult. Because we are taking the difficult

:31:43.:31:46.

decisions to fix Britain's finances, we can afford to continue to invest

:31:47.:31:49.

in science and innovation from investing in Scotland's futtre,

:31:50.:31:53.

helping to ensure it punches above its weight. Of course that hs the

:31:54.:31:56.

point, if we have a good, solid Sound economy that is growing, then

:31:57.:32:01.

we are able to do this type of work, we are able to spend taxpaydr's

:32:02.:32:07.

money in this way to support our great British businesses, and in

:32:08.:32:10.

particular the ones that ard so innovative in their approach and in

:32:11.:32:18.

the work that they do. So, to conclude, trade, exports,

:32:19.:32:25.

innovation, logo one. Thank you Before the Minister concludds, can I

:32:26.:32:28.

ask her to address the issuds of the steel industry at the moment?

:32:29.:32:35.

Because during that summit hn October: UK steel has enterdd a very

:32:36.:32:37.

strong case for the urgent `ction the government needed to take, some

:32:38.:32:45.

that the government has influence it, but can I impress on thd

:32:46.:32:50.

Minister is is a difficult time for steel, yes, we have acted on energy

:32:51.:32:56.

costs, but what about on thd other issues raised? I think we are

:32:57.:33:00.

absolutely delivering, not just on energy costs, but how we ch`nge the

:33:01.:33:04.

procurement rules. I am hugdly proud of that. She knows we are absolutely

:33:05.:33:07.

determined to continue to ddliver then we can to keep what thd Prime

:33:08.:33:11.

Minister has called a vital industry in production. We don't want to see

:33:12.:33:15.

the blast furnaces closing `t Port Talbot any more than to see them

:33:16.:33:17.

closing at Scunthorpe. If wd could have done anything, I see the Right

:33:18.:33:32.

honourable lady from Runcorn, we import -- recognise the importance.

:33:33.:33:38.

The same is true at Keele and flybridge. It is very important I

:33:39.:33:47.

have been pleased to work whth the Deputy first versed in trying to

:33:48.:33:51.

make sure we do all we can to keep those to plants open in Scotland.

:33:52.:33:57.

So, Madam Deputy Speaker, trade exports, innovation and

:33:58.:33:59.

productivity, all vital exponents and that is why the governmdnt has

:34:00.:34:04.

developed a clear plan of action and why Scotland and indeed all parts of

:34:05.:34:07.

the United Kingdom benefit from our continued commitment to these key

:34:08.:34:11.

priorities. Scotland has bedn part of the economic and job success

:34:12.:34:15.

story of the last six years, and our economic plan for the whole of the

:34:16.:34:19.

United Kingdom continues to deliver economic security and prospdrity for

:34:20.:34:22.

all of our people. The biggdst threat to businesses, growth and

:34:23.:34:27.

jobs and indeed productivitx and innovation for the Scottish people

:34:28.:34:30.

would see Scotland isolated and cut off from the United Kingdom, led by

:34:31.:34:35.

a party who want to return to the failed policy of more spendhng, more

:34:36.:34:38.

borrowing, that led us into the economic oblivion last time. The

:34:39.:34:43.

let's stick to the plan that has rescued our economy from thd brink,

:34:44.:34:46.

turned it into the fastest-growing economy in the advanced world and is

:34:47.:34:51.

now tackling head-on for thd long-term structural issues to

:34:52.:34:54.

insure not just for our children but notably for our grandchildrdn and

:34:55.:34:58.

that is why I will not be stpporting this motion and I ask the honourable

:34:59.:35:09.

members not to support eithdr. Can I start by giving apologies from the

:35:10.:35:13.

Shadow Business Secretary, who is in Brussels today meeting the Durope

:35:14.:35:17.

the commission and members of the European Parliament to disctss in

:35:18.:35:20.

fact many of the issues that form part of this debate today. But I

:35:21.:35:27.

want to turn my opening rem`rks to respond to some of the things the

:35:28.:35:30.

Minister has said. She indulged in something of a history lesson, but

:35:31.:35:38.

what happened in 2010. I relember well making the case that in 20 0 we

:35:39.:35:46.

faced half the level of bushness failures compared to the parable

:35:47.:35:52.

Tory sessions of the 80s and 90s. It was a record where the Labotr

:35:53.:35:57.

government had protected jobs, businesses and people's homds. The

:35:58.:36:03.

economy was recovering in M`y 2 10 when the coalition took offhce. That

:36:04.:36:11.

recovery was choked off by the Chancellor, when he came in with the

:36:12.:36:17.

emergency budget of June. And I m afraid that ever since, as we have

:36:18.:36:22.

heard from members already, the recovery which has been the slowest

:36:23.:36:27.

on record, and we see that hn the figures that have been disctssed

:36:28.:36:32.

already, is the true record of this government, when it comes to the

:36:33.:36:39.

economy, and they blew the growth that was steadily happening away

:36:40.:36:41.

when they came into power as part of a coalition. I will give wax. Very

:36:42.:36:46.

grateful. The honourable gentleman make some quite bold statemdnts but

:36:47.:36:52.

how do they tally with the fact that Britain today, now, is the

:36:53.:36:55.

fastest-growing country? How does that square with what he has said?

:36:56.:37:03.

After the slowest recovery on record, growth at some point will be

:37:04.:37:09.

the fastest in the world, isn't it? So it comes as no surprise. But the

:37:10.:37:20.

reality is, the government has failed, I'm not going to give way to

:37:21.:37:26.

make times. The government has failed in its own terms to dradicate

:37:27.:37:31.

the deficit. It was the Chancellor's promised that it would be gone by

:37:32.:37:36.

last year, and the government in fact has borrowed more in fhve and a

:37:37.:37:40.

bit years, it had borrowed lore than the election than Labour did in 13

:37:41.:37:44.

years in government, so on hts own terms it has failed. I just want to

:37:45.:37:49.

pick up the point she made `bout TTIP as well. If she wants lembers

:37:50.:37:54.

on the side, from whichever party, if she wants members of the public

:37:55.:37:59.

to be reassured about her, that she is not just giving warm words on

:38:00.:38:02.

TTIP, she could exempt it, `nd we would be sorted. She could dxempt it

:38:03.:38:06.

from public services. With the shadow minister acknowledge

:38:07.:38:18.

that the UK belongs to 110 other bilateral investment treatids with

:38:19.:38:22.

other countries around the world, none of which exclude public

:38:23.:38:26.

services and all of which h`ve the best state dispute settlement

:38:27.:38:30.

mechanism within them -- and do not believe it is the policy of either

:38:31.:38:34.

the Labour Party or SNP for Britain to withdraw from any of those

:38:35.:38:38.

important financial investmdnt treaties. And as I said, thd

:38:39.:38:43.

minister and the Government could relieve the concerns of manx people

:38:44.:38:47.

in this country, not just in this chamber, by committing to exempt

:38:48.:38:52.

from public services will stop Madam Deputy Speaker. When it comds to

:38:53.:38:58.

boosting productivity and otr economy, the ambitions of workers

:38:59.:39:01.

and businesses are not at odds with each other. Workers do well when

:39:02.:39:05.

they're successful businessds to give them secure implement.

:39:06.:39:09.

Businesses do well when thex can draw and a skilled workforcd and

:39:10.:39:12.

when they are selling products and services in a high wage economy We

:39:13.:39:16.

have many fine businesses m`king some of the best products in the

:39:17.:39:20.

world, delivering some of bdst services and developing manx of the

:39:21.:39:24.

best new ideas. Those successful businesses have highly commhtted and

:39:25.:39:26.

skilled workers competing whth the very best. But too many of our .2

:39:27.:39:34.

million businesses face headwinds which make this is much mord

:39:35.:39:36.

difficult than it should be and often lead to closure and job losses

:39:37.:39:44.

which are entirely avoidabld. We can learn from the success that in exist

:39:45.:39:50.

in this country in science `nd engineering, in universities, and we

:39:51.:39:53.

can learn from other countrhes as well. Success leaves clues. And in

:39:54.:39:58.

those countries that are outperforming us, one strikhng

:39:59.:40:02.

reason is the relationship between Government, businesses and

:40:03.:40:05.

workforce, because what oftdn works in successful countries and

:40:06.:40:10.

companies is a 3-way partnership for growth and productivity. Secure

:40:11.:40:14.

skilled, well-paid workers. Businesses working with the

:40:15.:40:16.

infrastructure and workforcd they need to expand, and a Government

:40:17.:40:20.

that builds the stable foundations on which the partnership between

:40:21.:40:24.

businesses and workers can grow The Business Secretary is unwilling to

:40:25.:40:29.

even uttered the words industrial strategy. But that is what hs

:40:30.:40:36.

needed. Industrial strategy is nothing more than Government's

:40:37.:40:39.

willingness to enter a partnership with business and workers. To match

:40:40.:40:46.

their ambitions by looking beyond elections cycles and investhng in

:40:47.:40:49.

the infrastructure and training they need to flourish. Businesses are

:40:50.:40:53.

clear on what they need frol Government. They want the Government

:40:54.:40:58.

to take a long-term approach to capitalising on new technology. To

:40:59.:41:02.

nurture sectors that will boost exports, to create jobs and generate

:41:03.:41:06.

sustainable growth. From Grden and renewable energy to high end

:41:07.:41:09.

manufacturing and digital technology, the UK is not short of

:41:10.:41:15.

opportunities, of innovativd entrepreneurs that want to put the

:41:16.:41:19.

UK at the global forefront of these emerging sectors, but under this

:41:20.:41:22.

Government, the UK spends ldss on research as a share of GDP than

:41:23.:41:27.

France, Germany, the US and China. It has embarked on real terl cuts to

:41:28.:41:35.

the UK business growth servhce including the manufacturing advisory

:41:36.:41:37.

service and the growth accelerator programme. It is astonishing to

:41:38.:41:45.

change innovation... These `re not the actions of a Government

:41:46.:41:48.

committed to playing its part in creating opportunities for the next

:41:49.:41:51.

generation of entrepreneurs. The growth accelerator programmd alone,

:41:52.:41:57.

it assisted more than 18,000 businesses. The ?100 million to

:41:58.:42:02.

finance the accelerator programme went into developing innovative new

:42:03.:42:07.

products and services, which create jobs and boost productivity. If the

:42:08.:42:12.

Government wanted a partnership of business, it would not have

:42:13.:42:15.

completely shutdown long-term dividends to the economy. These

:42:16.:42:18.

schemes are already beginning to deliver. Scraping short-terl cuts

:42:19.:42:27.

together for the Chancellor... The decision to axe these schemds is not

:42:28.:42:31.

just a knee jerk reaction to departmental cuts. It speaks volumes

:42:32.:42:35.

about the Government's real lack of long-term vision and commitlent to

:42:36.:42:40.

businesses. Productivity cannot improve and sustainable growth

:42:41.:42:44.

cannot be secured as long as this Government's message to

:42:45.:42:47.

entrepreneurs and innovators is you're on your own. Businesses want

:42:48.:42:51.

a trained workforce and a steady supply of skills to expand their

:42:52.:42:56.

operations. In a business strvey by the DEF, the manufacturers'

:42:57.:43:00.

organisation, half of manuf`cturers pointed to a skilled workforce as

:43:01.:43:04.

the single most important f`ctor in Bru boosting growth and

:43:05.:43:10.

productivity. Manpower Group Uk say that 30% of the largest instruction

:43:11.:43:14.

companies -- construction companies have had to turn down work due to a

:43:15.:43:18.

lack of skilled Labour. For all be Chancellor's talk of skills, more

:43:19.:43:21.

than two thirds of businessds say they are in bad need of mord skilled

:43:22.:43:27.

staff. The engines of growth in the UK, manufacturing and technology,

:43:28.:43:33.

all face growing skills shortages. Once again, there is a gulf between

:43:34.:43:37.

the Government's rhetoric and action. Their ?360 million hn cuts

:43:38.:43:42.

from the adult skills but it will dampen the ambitions of people

:43:43.:43:48.

hoping to learn the skills they need to enter the workforce and take

:43:49.:43:53.

skilled jobs. -- budget. Whhlst we on this side agree with the

:43:54.:43:58.

principle of an apprenticeship levy, we will be carefully examinhng the

:43:59.:44:02.

details. It is vital that the policies used to drive up the

:44:03.:44:07.

quality as well as the quantity of apprentices. It is important that it

:44:08.:44:11.

meets the ambitions of learners as well as the needs of employdrs, and

:44:12.:44:15.

it's also important that dods not become, as Seamus Nevin of the eye

:44:16.:44:24.

over the side, a payroll tax that hits small and medium-size

:44:25.:44:29.

businesses. -- EEF two. The details need to be watched carefullx as they

:44:30.:44:35.

ensure that smaller companids are exempted. Businesses want ddcent

:44:36.:44:42.

infrastructure, strategic road networks, cheaper broadband, cheap

:44:43.:44:48.

energy supplies. These will generate growth, but Government's role in

:44:49.:44:51.

that partnership is to build the physical infrastructure thex need to

:44:52.:44:56.

operate in. Recent CBI survdys of businesses showed that nearly two

:44:57.:44:59.

thirds are worried about thd slow progress of infrastructure objects

:45:00.:45:04.

and they are right to be concerned. The gulf between the Governlent s

:45:05.:45:08.

rhetoric and the projects they have considered is widening. The quality

:45:09.:45:18.

of our infrastructure... Capital spending has halved since 2010. The

:45:19.:45:23.

Government seems to be misshng two simple facts. We have world beating

:45:24.:45:27.

innovators and businesses that want to expand and create jobs. They

:45:28.:45:31.

cannot do this without roads, broadband and good rail and air

:45:32.:45:35.

links. That is the Government's responsibility and it is fahling to

:45:36.:45:41.

deliver. If the Chancellor still claims to be leading a march of the

:45:42.:45:45.

makers, I am afraid the evidence shows he is reading in the wrong

:45:46.:45:50.

direction entirely. Goods exported last July reached their lowdst

:45:51.:45:54.

levels since September 2000 ten In the three months to November 20 5,

:45:55.:45:59.

the trade deficit stood at ?7.7 billion. The truth is, the trade

:46:00.:46:04.

deficit is a problem that this Government and the previous

:46:05.:46:06.

Coalition Government have s`id a number of times they would `ddress.

:46:07.:46:12.

In the north-east the balance of trade is positive, and a large

:46:13.:46:18.

contributing factor to that was the quayside steel industry. To share my

:46:19.:46:22.

anger and frustration that the Government failed to do anything to

:46:23.:46:29.

save steel-making there. We hope that China will not get market

:46:30.:46:33.

economy status which could put the final nail in the National steel

:46:34.:46:38.

industry in this country. This is the first opportunity I havd had to

:46:39.:46:42.

congratulate my honourable friend and her colleagues from the

:46:43.:46:45.

steel-making areas for the fine work they have done in representhng,

:46:46.:46:51.

attempting to saved the stedl industry. I will come on to the

:46:52.:46:56.

steel industry later becausd I entirely agree with her. Thd

:46:57.:47:03.

Chancellor said he wants to double exports to ?1 trillion by 2020.

:47:04.:47:08.

Forecasts show he is set to miss this by more than ?350 billhon. In

:47:09.:47:14.

other words, he will be 70% short of his target. In 2011, the Prhme

:47:15.:47:18.

Minister said he intends to increase the number of UK exporters by

:47:19.:47:25.

100,000 by 2020. In its anntal business survey, the ONS felt the

:47:26.:47:31.

number of UK exporters actu`lly felt last year. The risk to long,term

:47:32.:47:36.

growth and productivity of failing to increase exports is stark. It

:47:37.:47:39.

means slower long-term growth, depressed wage growth and an even

:47:40.:47:44.

more depressed rising living standards. As the chief economist in

:47:45.:47:47.

the British Chamber of Commdrce said last year, unless radical mdasures

:47:48.:47:52.

are taken to strengthen our export performance, our trade deficit will

:47:53.:47:56.

continue to be a threat to the country's long-term economic

:47:57.:48:00.

performance. But just as serious is the threat posed by a Government

:48:01.:48:04.

divided over whether or not to pull plug on UK businesses' main trading

:48:05.:48:12.

partner. Trade with the EU was worth ?227 billion to the UK economy last

:48:13.:48:16.

year. It is a lifeline for lany businesses and for many workers The

:48:17.:48:20.

risk we face is from a Government that fails to unite, wanting to

:48:21.:48:26.

honour a partnership with those businesses and workers who rely on

:48:27.:48:30.

EU trade with their livelihood. Instead, it is divided on whether or

:48:31.:48:36.

not to kick the legs from under UK business, not least in respdct of

:48:37.:48:39.

relationships which account for more than half of UK trade and which are

:48:40.:48:44.

especially important for many S M Es. It is compounded by a l`g in

:48:45.:48:50.

productivity. ONS statistics show that as of 2014, productivity as

:48:51.:48:55.

output per hour in the UK w`s 2 % lower than the average for the rest

:48:56.:49:00.

of the G-7 countries. According to the ONS last year, the absence of

:49:01.:49:05.

productivity growth in seven years since 2007 is unprecedented in the

:49:06.:49:09.

post-war period. Productivity has been revised down next year, the

:49:10.:49:13.

year after and the year aftdr that and the gap between UK prodtctivity

:49:14.:49:18.

and the rest of the G-7 is now the widest since 1991. So our long-term

:49:19.:49:25.

strategy to boost trade and innovation is a partnership. The

:49:26.:49:27.

partnership cannot ignore the workforce. On the contrary, it can

:49:28.:49:32.

be one of our most powerful acids. A partnership between workers,

:49:33.:49:35.

businesses and Government to boost productivity is a long-term vision

:49:36.:49:40.

that requires a long-term commitment to investment from Government, one

:49:41.:49:43.

which stretches over many parliaments and requires a large

:49:44.:49:47.

degree of political as well as industrial consensus. If we truly

:49:48.:49:54.

want to boost the UK's prodtctivity, manufacturing is a good place to

:49:55.:49:58.

focus our attention for a ntmber of reasons. Not least because the

:49:59.:50:02.

productivity benefits of industry reach far beyond itself to benefit

:50:03.:50:06.

growth, skills and productivity in the UK as a whole. Manufacttrers

:50:07.:50:12.

improve efficiency at a pacd and intensity that outstrips allost any

:50:13.:50:20.

sector, there -- in fact, they inject three times their output in

:50:21.:50:22.

the economy into improving machinery. A survey in 2015 showed

:50:23.:50:29.

that 80% of their members intend to invest in machinery with thd aim of

:50:30.:50:33.

improving productivity. The technology again filters out.

:50:34.:50:45.

Investment in processes and systems improves efficiency and accdlerates

:50:46.:50:51.

the diffusion of technology. Generating sustainable growth,

:50:52.:50:54.

raising skill rebels and disbursing opportunity to every corner of the

:50:55.:50:59.

country, prioritising manuf`cturing should be the cornerstone of a

:51:00.:51:02.

strategy for increasing productivity. But this Government's

:51:03.:51:06.

track record shows it either does not understand this or else it is

:51:07.:51:10.

simply not willing to do wh`t is necessary to support the industry.

:51:11.:51:16.

And as my honourable friend from Redcar says, the tragic sittation

:51:17.:51:19.

which unfolded in the steel industry is a case in point. The UK steel

:51:20.:51:23.

industry ran a trade surplus in all but three of the last 17 ye`rs.

:51:24.:51:29.

Steel experts were worth ?6 billion to the UK in 2014, not to mdntion

:51:30.:51:34.

the 20,000 families the indtstry supported. Serious challengds

:51:35.:51:42.

coalesced. A glut of global supply, energy costs, the strong potnd.

:51:43.:51:45.

These were difficult challenges but surmountable for a Government. I

:51:46.:51:50.

will give way. Does he accept that the fundamental problem is that the

:51:51.:51:54.

price of steel has almost h`lved and no Government can change th`t? And

:51:55.:52:02.

of course what she says is true the price had halved, but other

:52:03.:52:05.

countries in the European Union chose to intervene while we said

:52:06.:52:10.

that we would not, and I'm `fraid that the record of the Government on

:52:11.:52:17.

this has been woeful. With the honourable gentleman agree to send

:52:18.:52:20.

me details of other governmdnts in the EU that have intervened

:52:21.:52:26.

supposedly to save their stdel industries, and I will pass this on?

:52:27.:52:30.

Because they must be in bre`ch of the state aid rules. We deb`ted this

:52:31.:52:37.

so many times. The minister knows that some countries choose to

:52:38.:52:42.

operate using the state aid rules in a far more beneficial way that we do

:52:43.:52:48.

in this country. She knows that and it is about time the Governlent here

:52:49.:52:53.

chose to do the same. The industry needed the Government to pl`y its

:52:54.:52:56.

role in what should be a partnership. The situation demanded

:52:57.:53:00.

that the Government see the long-term strategic value of steel

:53:01.:53:04.

production. It needed the UK to do what other UK governments -, what

:53:05.:53:07.

other governments did and moved swiftly to protect its industries. A

:53:08.:53:12.

lack of strategy, willingness to make a strategic interventions and

:53:13.:53:15.

unwillingness to support thd industry through practical steps

:53:16.:53:19.

well within its capabilities, tackling business rates through the

:53:20.:53:23.

supply chain, dealing with electricity costs, better

:53:24.:53:25.

procurement practice to favour British steel armour the Government

:53:26.:53:31.

failed to step up to the pl`te as a partner of industry. In doing so, it

:53:32.:53:35.

turned a temporary, toxic mhx of challenges into a permanent gap in

:53:36.:53:39.

our industrial make-up. This is a lesson we have to take seriously.

:53:40.:53:43.

Productivity will continue to lag in the UK as long as Government sit on

:53:44.:53:48.

the sidelines and wash their hands of the responsibility to safeguard

:53:49.:53:54.

key industries. The aspirathon here is one everyone in the Housd will

:53:55.:53:59.

agree with, and economy with high skilled, well-paid jobs, and economy

:54:00.:54:01.

in which businesses will grow, export and investment to boost

:54:02.:54:06.

productivity. Agreeing on the aim is one thing but the way we go about it

:54:07.:54:11.

is quite another. The fact hs achieving it requires a long-term

:54:12.:54:14.

partnership in which we chalpioned the workforce and business.

:54:15.:54:17.

Investment, not cuts. And economy that creates we`lth not

:54:18.:54:28.

relies on consumer borrowing. We need a strategy for workers,

:54:29.:54:31.

business and government to work together for Britain. Government's

:54:32.:54:35.

was not of an observer, it hs making sure that our exporters get the help

:54:36.:54:41.

they need, taking action to boost productivity. Tackling the skills

:54:42.:54:47.

agency. Safeguarding key industries. The Minister and her governlent have

:54:48.:54:50.

failed on each point. They can't deliver, they won't be an active

:54:51.:54:53.

part of that partnership because they don't believe in intervening.

:54:54.:54:59.

Their empty rhetoric would get our economy nowhere. Only a long-term

:55:00.:55:03.

industrial strategy will deliver that high-value economy will want to

:55:04.:55:08.

see. A strategy of partnership and a strategy that is both pro-btsiness

:55:09.:55:09.

and pro-worker. I am delighted to be called so early

:55:10.:55:20.

in this important debate. I was particularly keen to catch xour eye

:55:21.:55:23.

in this debate because we h`ve so few debates in this house on

:55:24.:55:28.

exports, and I believe that if we are to grow our economy sustainably

:55:29.:55:32.

the only way to do it is vi` increasing our exports. So this is

:55:33.:55:37.

an important debate, and it is a great pity that our politics

:55:38.:55:40.

produces such negativity from all the opposition parties, and matters

:55:41.:55:46.

and total contrast to my right honourable friend the Brock 's tale,

:55:47.:55:49.

who is so positive and outw`rd looking, and producing such good

:55:50.:55:59.

policies, just a champion one or two of the achievements, becausd I am

:56:00.:56:10.

passionate about exports, and I do want to see this country exporting

:56:11.:56:19.

more. Just to champion some of the achievements, which I think helped

:56:20.:56:25.

exports considerably, a comlitment to cut ?10 billion of red t`pe to

:56:26.:56:30.

back British business and ptt resources into more producthve use,

:56:31.:56:35.

on top of ?10 billion that we cut in the last parliament. We havd cut

:56:36.:56:39.

corporation tax to 20%, one of the lowest rates in the G-7, and we have

:56:40.:56:44.

an aspiration to cut it further Boosting skills and on top of the 3

:56:45.:56:58.

million in the last Parliamdnt, as I was saying, investing 6.9 mhllion in

:56:59.:57:04.

UK research, and in particular protecting the science budgdt of

:57:05.:57:08.

?4.9 billion per annum. All of this will help our innovative colpanies

:57:09.:57:14.

in this country, building stronger links with emerging markets,

:57:15.:57:18.

especially China and India. I was delighted to see that both leaders

:57:19.:57:23.

of those, the largest populous nations in the world, have been to

:57:24.:57:27.

this country in the last ye`r, and what successful visits they have

:57:28.:57:35.

had. So my right honourable friend, the member for Bromsgrove, hn

:57:36.:57:40.

launching the government's productivity plan, said this:

:57:41.:57:46.

Britain is home to the world's most innovative and dynamic businesses,

:57:47.:57:49.

staffed by incredibly talented and hard-working individuals. Hd went on

:57:50.:57:54.

to say higher productivity leans higher incomes. When productivity

:57:55.:57:58.

rises, standards of living rise too. So today I am proud to practice

:57:59.:58:04.

Dunne publish -- proud to ptblish this. Honourable members from all

:58:05.:58:10.

sides of the sides have comlented on productivity this afternoon, and it

:58:11.:58:15.

is true that we lag behind some of our major competitors in

:58:16.:58:20.

productivity. And I think m`ny economists have puzzled over this,

:58:21.:58:23.

but I think the reason is actually very simple. In that list of

:58:24.:58:27.

achievements that I gave just now, I omitted the fact, and this lust be

:58:28.:58:31.

hugely welcomed to all membdrs of the house, that we have a rdcord

:58:32.:58:34.

number of people in work in this country, due to our flexibld labour

:58:35.:58:39.

laws, we have 32 million people in work in this country, more than ever

:58:40.:58:46.

before, and that number is rising. I believe because of that fact,

:58:47.:58:49.

because we have more people employed, maybe some of our

:58:50.:58:52.

companies have not invested quite as much as they might have dond in

:58:53.:58:56.

capital equipment, which wotld be labour-saving, which has happened on

:58:57.:58:59.

the continent, where their labour laws are much more to the board

:59:00.:59:01.

There are higher unemployment resulting from that, Greece, 50

:59:02.:59:11.

youth unemployment. Here, I am grateful to say, that our youth and

:59:12.:59:16.

implement is dropping. I thhnk this is a terrific achievement in this

:59:17.:59:21.

country. Let's have a look `t where trade is going around the world In

:59:22.:59:26.

2014, UK's export of goods `nd services totalled 513 billion, and

:59:27.:59:34.

imports totalled 548 billion, of which the EU accounted 45% of

:59:35.:59:39.

exports and 53% of imports. So the balance of trade with the ET is

:59:40.:59:46.

against us. In other words, we are importing less from the EU than we

:59:47.:59:49.

are exporting to them. So there is no reason why we should not look

:59:50.:59:54.

round the rest of the world to see where we could export more. I

:59:55.:59:57.

commend to the Minister this is exactly what we ought to be doing.

:59:58.:00:01.

This is against the backgrotnd of the policy of wanting to increase

:00:02.:00:14.

trade. I think there is no reason why we could not do much more in

:00:15.:00:18.

tonnes of export. UK TIA in the last few years has been -- UK UKTI.

:00:19.:00:34.

How we might encourage UKTI to do even more, this business in my

:00:35.:00:44.

constituency exports to 40 countries around the world, it makes hts

:00:45.:00:49.

products in China, exports them directly to Australia withott them

:00:50.:00:54.

ever touching this country `nd yet it pays UK corporation tax. These

:00:55.:00:58.

are precisely the sort of medium-sized companies we otght to

:00:59.:01:07.

be in foraging to export more. One of things they said was there was

:01:08.:01:12.

too much emphasis. If we cotld encourage people, it is an

:01:13.:01:17.

inductively important part of the exporting programmed to go to these

:01:18.:01:22.

trade shows. If we could encourage a little bit more incentive from UKTI,

:01:23.:01:28.

these companies to go to thdse trade shows, particularly where they have

:01:29.:01:31.

a record of success, and I have five or six points at the end of my

:01:32.:01:35.

speech that I will suggest to the Minister to encourage exporting

:01:36.:01:41.

This company made the point that it is only in about the second or third

:01:42.:01:46.

year, the second is exploration , the third if you are lucky hs

:01:47.:01:50.

beginning to make a profit. Therefore, they need a bit of

:01:51.:01:53.

extension of that from the do for years. They are in their thhrd year,

:01:54.:01:57.

they are about to be cut off as they are about to be profitable. I can

:01:58.:02:03.

see my honourable friend wants to intervene. I am grateful, I am

:02:04.:02:08.

delighted to see my predecessor Lord Maude recently. Would he agree with

:02:09.:02:12.

me, a number of manufacturing firms in Horsham. What I would report the

:02:13.:02:17.

better service they are getting from the Foreign Office and our

:02:18.:02:20.

ambassadors abroad in helping British exports, that is solething

:02:21.:02:23.

that should be welcomed and put on the record. I partially agrde with

:02:24.:02:29.

my honourable friend, and I'm sorry to only partially agree. I `m not

:02:30.:02:34.

going to name, but this particular company went to one of our nearer

:02:35.:02:39.

embassies to this country and was distinctly unimpressed with the

:02:40.:02:41.

trade representatives that were there. He described them as spotty

:02:42.:02:47.

youths just out of university. Whereas he was saying that what we

:02:48.:02:51.

need is people in our embassies and indeed in Tampa, who will h`ve a

:02:52.:03:04.

record actually helping companies to export. There are approximately a

:03:05.:03:16.

million small and medium-sized in this country. I would suggest to my

:03:17.:03:19.

right honourable friend and minister there are still much to be done

:03:20.:03:23.

still far too many companies that don't understand what it is to

:03:24.:03:27.

export, and don't understand the advantages of exporting. Thdre are

:03:28.:03:30.

some world known figures th`t, once you have exported for the fhrst

:03:31.:03:34.

time, your productivity goes up by 7%. Not only does your profhts go up

:03:35.:03:40.

because hopefully you are doing profitable business exporting, it

:03:41.:03:43.

also means that your productivity will go up as well because ht

:03:44.:03:46.

sharpens your whole operation because you are having to ddal with

:03:47.:03:51.

that extra dimension. I think we could do much more, in coll`boration

:03:52.:03:57.

with UKTI, export finance, laking them all come together much more

:03:58.:04:00.

closely. I have another suggestion at the end of my speech, innovation

:04:01.:04:07.

UK. And UKTI could get much closer together so that some of our best

:04:08.:04:12.

seed generated companies should actually at the very beginnhng of

:04:13.:04:19.

their existence, not when they are already established, right `t the

:04:20.:04:23.

beginning of their existencd, but many high-tech companies should

:04:24.:04:26.

think about exporting as ond of the first things they do after they

:04:27.:04:33.

become established. I concur with the honourable member about the

:04:34.:04:37.

importance of UKTI. Unfortunately, in the Autumn Statement, thd

:04:38.:04:43.

Chancellor slashed the budgdt of UKTI, and so outraged is thd

:04:44.:04:47.

organisation that its chief executive resigned, so clearly his

:04:48.:04:57.

government is not helping UKTI. We all have to encourage them to

:04:58.:05:01.

operate within the climate there is, although I have to say frankly if

:05:02.:05:07.

you want to expand exports, UKTI is one of those areas where actor I

:05:08.:05:10.

would put the money but I would make sure it is operating as well as it

:05:11.:05:16.

possibly can. One of the suggestions I make to my honourable fridnd is

:05:17.:05:22.

that it should be benchmarkdd against the best export agencies in

:05:23.:05:24.

the world. One should never ever be complacent and I think by

:05:25.:05:28.

benchmarking that is one of the things we can do. After all, as my

:05:29.:05:34.

right honourable friend has just said in his intervention to me, on

:05:35.:05:37.

the whole, despite what my company said when they went to see the local

:05:38.:05:44.

Lord Maude. Our ambassadors are some of the best in the world, and we

:05:45.:05:47.

have one of the best network ambassadors of the world,

:05:48.:06:00.

one of the most compared to have embassies around the world. It was

:06:01.:06:04.

this government after all that started opening embassies, where the

:06:05.:06:06.

previous government had closed it. So we have the network, we need in

:06:07.:06:09.

some places to sharpen up some of the expertise, but I think that

:06:10.:06:11.

gives us a very good financd -- foundation on which to build.

:06:12.:06:15.

Through our soft power, through the BBC World Service, the Brithsh

:06:16.:06:21.

Council, we are very well established in one of those -- many

:06:22.:06:24.

of those major bricks markets and other smaller markets where we need

:06:25.:06:26.

to concentrate our efforts. I think it is in those markets, the

:06:27.:06:29.

high-growth markets, as opposed to Europe, which is lower growth, is

:06:30.:06:38.

perhaps where we need to be concentrating some of our efforts. I

:06:39.:06:40.

am delighted therefore that are exports to China are growing in such

:06:41.:06:43.

quantities, albeit from a low base, but actually we are putting

:06:44.:06:49.

significant resources of UKTI into China and it is paying dividends.

:06:50.:06:53.

The visit from the Chinese premier this year will only help to cement

:06:54.:06:58.

that effort. So, Madam Deputy Speaker, I don't want to make too

:06:59.:07:01.

long a speech but I do think there are some things that we could do to

:07:02.:07:07.

help companies export. I have some specific ideas for fiscal incentives

:07:08.:07:14.

to give to medium and small size businesses, that you could give them

:07:15.:07:18.

some specific fiscal help whth export related activity. And I think

:07:19.:07:26.

that maybe a better way in lany companies, and alerting manx

:07:27.:07:28.

companies, because companies are very cute as to how they can save

:07:29.:07:33.

tax. Maybe one of the best ways we could do of encouraging all medium

:07:34.:07:36.

and small sized businesses to think about exporting, and to say to them

:07:37.:07:41.

that actually this isn't necessarily going to be a huge cost in xour

:07:42.:07:51.

possible export markets. Thd second suggestion I have already mdntioned,

:07:52.:07:54.

to extend the tap programme from three to four years, where success

:07:55.:07:57.

has already been demonstratdd. If you can't make success withhn the

:07:58.:08:01.

three-year period, you are tnlikely to make it, that if you alrdady

:08:02.:08:05.

demonstrating success, such as this company I have already menthoned, I

:08:06.:08:08.

wish my honourable friend would listen from the front bench, please.

:08:09.:08:13.

If you extended the tap programme from three to four years whdn

:08:14.:08:16.

success can be demonstrated, I think that would be helpful. The third

:08:17.:08:24.

suggestion I have is that wd should buddy a successful exporting SME

:08:25.:08:29.

with one that exports for the first time. I think that would be really

:08:30.:08:33.

helpful. It is the fear the unknown when you are a company only in the

:08:34.:08:43.

-- only implying a fewer employees, having to deal with the VAT,

:08:44.:08:49.

national insurance, and the Manufacturing, that is actu`lly

:08:50.:08:51.

quite frightening for a small company, and I think that is what is

:08:52.:08:54.

so off-putting. But actuallx bloodying with one in the s`me

:08:55.:08:56.

market but hopefully not colpeting, would be one of the ways.

:08:57.:09:06.

If you tell us if you could not get his own minister to listen to him,

:09:07.:09:13.

what hope have we? I think H will ignore that intervention.

:09:14.:09:17.

LAUGHTER I think I could have come up with

:09:18.:09:22.

something better myself. So the fourth suggestion I have is to give

:09:23.:09:30.

blacks a stronger exporting role. -- to live LETs a stronger exporting

:09:31.:09:41.

role. Every single one of those nine divisions they have should be

:09:42.:09:44.

utterly focused on exporting. I would give a much greater

:09:45.:09:50.

combination between UKTI and Innovate UK. Innovate UK is already

:09:51.:09:56.

developing the technology board strategy and giving help to

:09:57.:10:01.

companies to expand their ideas often in debating ideas frol the

:10:02.:10:03.

best universities and this hs an area from which the UK would

:10:04.:10:11.

ultimately, from little acorns often the greatest companies grow. That is

:10:12.:10:16.

where we might look at encotraging them to export. I would reinvest --

:10:17.:10:28.

reinvigorate... And incentivise them properly. Pay them properly, because

:10:29.:10:33.

otherwise the private sector will always continue to employ the very

:10:34.:10:37.

best people. I think we havd made very good progress in the l`st

:10:38.:10:41.

Parliament and this Parliamdnt. I think there is much more to do. Our

:10:42.:10:46.

all-party trade and investmdnt group will help the Government whdrever it

:10:47.:10:49.

possibly can die cutting people in touch with the UKTI, in touch with

:10:50.:10:56.

their LEPs and as we go arotnd the world, every one of us, every member

:10:57.:11:03.

of Parliament, should be aldrt as to which companies in their

:11:04.:11:06.

constituency are able to export to those markets, and put thosd

:11:07.:11:09.

companies in touch with that possibility, and in that wax I think

:11:10.:11:13.

we can all become trade export ambassadors, and I think it would

:11:14.:11:19.

help exporting in this country considerably. Thank you. It is a

:11:20.:11:26.

pleasure to take part in thhs debate and to follow the honourabld member.

:11:27.:11:32.

He has made a contribution with some sensible suggestions, particularly

:11:33.:11:35.

about the buddy system with businesses. It is a sensibld one

:11:36.:11:38.

that all the agencies involved should take onboard. I was not

:11:39.:11:43.

expecting to speak quite so early in this debate. It is clearly ` matter

:11:44.:11:49.

of great interest to some. Unfortunately, this opposithon

:11:50.:11:53.

debate memo does not seem to be passed to the official opposition.

:11:54.:11:57.

There are some honourable mdmbers providing an honourable excdption

:11:58.:12:01.

but it is a little bit surprising given how important these

:12:02.:12:07.

fundamental tenets of our economy are, not just to the economx but to

:12:08.:12:13.

the services that they provhde, -- provide the money to pay for. You

:12:14.:12:16.

don't get the economy right, you do not have the services. I am really

:12:17.:12:22.

pleased to take part in this and I'm going to focus on one of thd areas

:12:23.:12:26.

where I think the UK but in particular Scotland has verx strong

:12:27.:12:30.

both natural and competitivd advantages, and that is in dnergy.

:12:31.:12:33.

Oil and gas, as I have touched upon, Oil and gas, as I have touched upon,

:12:34.:12:36.

and double would buy to thank the minister for what was a poshtive

:12:37.:12:42.

response to my question abott oil and gas. I think it would bd more

:12:43.:12:45.

helpful if we focused around what could be done to help the shtuation

:12:46.:12:49.

rather than the sum of the politics of round it. I except wholeheartedly

:12:50.:12:56.

that this... We need to reflect on what message this place sends to the

:12:57.:12:59.

folk in Aberdeen being laid off when we are having knock-about round

:13:00.:13:03.

about the oil price. It is not helpful, but I do respect, `ccept

:13:04.:13:09.

and fat full for the positive comments. It would seem to le that

:13:10.:13:13.

this Government has turned over a new leaf this year in his approach

:13:14.:13:18.

to oil and gas. I've had positive conversations with the Energy

:13:19.:13:21.

Minister today and there is also a positive response to the qudstions

:13:22.:13:27.

by Matt Angle friend the melber for Livingston. -- my honourabld friend.

:13:28.:13:32.

We are in an incredibly difficult position in terms of the oil price.

:13:33.:13:37.

Jobs are being lost. But thdre is still a bright future. The dnergy

:13:38.:13:43.

industry is doing what it c`n to produce -- reduce costs.

:13:44.:13:46.

Unfortunately in a large of cases that will require job losses. But it

:13:47.:13:51.

also requires innovating. It does require help from Government to

:13:52.:13:56.

bridge over what we hope will be a temporary downturn. Most people are

:13:57.:14:01.

expecting the oil price to rise at some stage, it is just not nearby

:14:02.:14:06.

when and how much. The constituency I represent in Aberdeen South,

:14:07.:14:10.

Aberdeen is a city of innov`tors, no doubt about that. It will pdrhaps

:14:11.:14:15.

come as no surprise to some of my colleagues on these benches that it

:14:16.:14:19.

is the city in Scotland that filed the most patents in 2014. More so

:14:20.:14:25.

than Edinburgh, with a population twice the size of Aberdeen, and more

:14:26.:14:29.

so than Glasgow, with a poptlation almost three times the size of

:14:30.:14:34.

Aberdeen. Primarily, in the oil and gas but also in terms of life

:14:35.:14:37.

sciences, biosciences and food and drink. This is a city in whhch it is

:14:38.:14:43.

driving but it is unquestionably an oil and gas and indeed an energy

:14:44.:14:48.

hub. The job losses announcdd by BP yesterday, coming on the back of 115

:14:49.:14:53.

announced before are genuindly heartbreaking for those involved. As

:14:54.:14:59.

I have said though, the indtstry is taking steps it can to innovate An

:15:00.:15:05.

innovation is one of the hallmarks of the oil and gas industry. It is

:15:06.:15:09.

heartening to see the level of innovation and the level of renewed

:15:10.:15:13.

collaboration that is taking place in the industry as they work to deal

:15:14.:15:21.

with the low oil price. Somd of the issues that the industry had were

:15:22.:15:25.

pre-existing that they have been exacerbated. There are thred sides

:15:26.:15:32.

of the coin in terms of the cost and income, oil and gas companids facing

:15:33.:15:35.

these. One is the oil price. None of us can do anything about th`t. Two

:15:36.:15:40.

is the costs that the industry is exposed to. They are doing what they

:15:41.:15:48.

can. Third is taxation. I al pleased to see that there is an open mind on

:15:49.:15:53.

the Treasury benches around about this and I plead with them to look

:15:54.:15:57.

at the oil and gas taxation in the round to see what can be done. There

:15:58.:16:04.

is also an important point. There is -- the apprenticeship levy has been

:16:05.:16:09.

raised and we wholeheartedlx support this provided it has the investment

:16:10.:16:13.

coming to Scotland, that thdre have been questions asked, again by my

:16:14.:16:16.

right honourable friend the member for Livingston, about the double

:16:17.:16:24.

imposition of an apprenticeship scheme on our oil and gas companies

:16:25.:16:28.

who already pay into apprenticeship schemes. As part of progressing and

:16:29.:16:34.

maintaining Aberdeen's position as an innovative hub, local

:16:35.:16:39.

authorities, Aberdeen City Council and Aberdeenshire councils `re

:16:40.:16:45.

exploring a city deal and as well as investment in infrastructurd, which

:16:46.:16:48.

is obviously an important p`rt of our debate and a key way of Security

:16:49.:16:55.

economic growth, they are also looking at how they can continue to

:16:56.:16:59.

make the best of the experthse and innovation that the city of Aberdeen

:17:00.:17:06.

is proud to host. There are proposals within the city ddal to

:17:07.:17:08.

create an innovation Hub around about the two universities, bringing

:17:09.:17:14.

together the city and universities in a way that has been disctssed

:17:15.:17:18.

here already. I hope, and it is part of the measures required to protect

:17:19.:17:22.

the north-east of Scotland, and provide that bridging that H

:17:23.:17:25.

mentioned for the oil industry, I think the Aberdeen city reghon deal

:17:26.:17:31.

is an important part of that toolkit and one I would commend agahn to the

:17:32.:17:40.

Government. There are many ways even in these times of diffhculty,

:17:41.:17:49.

where innovation in the oil industry can provide a massive support to the

:17:50.:17:54.

UK economy. Enhanced oil recovery is one of them. Looking at being one of

:17:55.:18:01.

the first movers in terms of decommissioning, not somethhng we

:18:02.:18:04.

want to see happening prematurely but something that was inevhtably

:18:05.:18:08.

going to happen. We have thd ability as one of the more mature ohl and

:18:09.:18:13.

gas basins in the world to take the expertise that we have and dxport it

:18:14.:18:18.

globally. That is an opporttnity that we cannot afford to miss. In

:18:19.:18:26.

terms of exports, the north,east and the oil and gas supply chain which

:18:27.:18:29.

in fairness is much more th`n Aberdeen, is the length and breadth

:18:30.:18:35.

of the UK, is good. It is gdtting better. Aberdeen relies much less

:18:36.:18:40.

upon the North Sea in terms of supply companies based therd for

:18:41.:18:46.

their income. I would like to draw the House' attention, though, to

:18:47.:18:49.

something announced at the tail end of last year, and it was solething

:18:50.:18:54.

that in principle I support and I'm not criticising, but I do think it

:18:55.:19:00.

would need to be taken in the right way, with a more supportive approach

:19:01.:19:03.

to oil and gas, and that is the announcement that they will be an

:19:04.:19:08.

export credit agreement of $500 million for a couple of companies

:19:09.:19:14.

based in the UK for exports to Petrobras, the Brazilian st`te-owned

:19:15.:19:20.

oil major. That is good in htself, in the fact that it helps stpport

:19:21.:19:26.

exports from the UK, from Aberdeen, but I do think we need to bd careful

:19:27.:19:32.

when we are looking at thesd things. If we are providing exports to

:19:33.:19:34.

something like the oil and gas industry elsewhere, we may

:19:35.:19:41.

inadvertently mean that we require greater imports of oil and gas in

:19:42.:19:45.

the future. So we do need to get it right in terms of... I do not mean

:19:46.:19:51.

to criticise that but you h`ve to have both sides there. You have to

:19:52.:19:55.

have support for exports but you also have to have the support for

:19:56.:20:04.

the domestic industry. Aberdeen and Scotland more widely have htge

:20:05.:20:07.

natural advantages when it comes to green energy. The Paris deal, I

:20:08.:20:15.

think, cements the opportunhty we have in this regard. There hs a sad

:20:16.:20:21.

irony in that the deal comes at the same time as the UK Governmdnt has

:20:22.:20:27.

taken the hatchet to a numbdr of green energy policies. One which

:20:28.:20:31.

undermines that opportunity to truly embrace what will be one of the

:20:32.:20:37.

biggest global growing markdts of this century. In the Secret`ry of

:20:38.:20:46.

State for Energy and Climatd Change's much heralded recess

:20:47.:20:50.

speech, she said, and I quote, at the same time we are building new

:20:51.:20:55.

interconnect is to make it dasier to import cheaper electricity from

:20:56.:21:01.

Europe. I and the SNP support the building of interconnect is. I think

:21:02.:21:06.

an integrated European markdt for electricity is something whhch will

:21:07.:21:10.

be a good thing, but I think the ambition there and the logic for

:21:11.:21:16.

doing it is the wrong way round We should not be doing this to import

:21:17.:21:20.

electricity. We should be ghving it to export the green electricity

:21:21.:21:24.

which can be produced from the wind, waves, C and tides in Scotl`nd. That

:21:25.:21:32.

is what we should be giving, that is the opportunity of interconnectors,

:21:33.:21:35.

not to import cheap electricity but to build it industry we can be proud

:21:36.:21:40.

of, to develop the skills wd need. And the renewables sector is an

:21:41.:21:43.

important part of rebalancing the economy. Rebalancing it in

:21:44.:21:48.

geographic terms as much as anything else. There is often a crithcism,

:21:49.:21:54.

particularly of onshore wind, that it does not provide that many jobs.

:21:55.:21:58.

The reality is it does provhde a lot of jobs, and it provides jobs in

:21:59.:22:02.

places where without the wind industry there would likely be no

:22:03.:22:06.

jobs at all. You cannot overstate the importance of a small ntmber,

:22:07.:22:12.

perhaps, of highly paid jobs in an area where they do not exist. Will

:22:13.:22:21.

he also accept that many of the studies in Scotland have shown that

:22:22.:22:26.

the onshore wind industry and the way it spoils the landscape has

:22:27.:22:29.

displaced and taken away a lot of to risk jobs? I have heard a sdssion is

:22:30.:22:33.

around about this year in, xear out, around about this year in, xear out,

:22:34.:22:38.

but a spot as I understand ht, the tourist sector in Scotland hs doing

:22:39.:22:41.

very well. It continues to do well and it is a major sector of growth

:22:42.:22:46.

in the Scottish economy so H do not quite understand the asserthons

:22:47.:22:50.

There is anecdotal evidence but it is no more than that. Someone who

:22:51.:22:56.

says, I came to Scotland, I didn't like the wind turbines. Somdbody

:22:57.:23:00.

else is there to take their place and will be because Scotland offers

:23:01.:23:02.

a world-class tourism that H do not a world-class tourism that H do not

:23:03.:23:07.

believe is in anyway to spohl, in the honourable gentleman's words,

:23:08.:23:13.

why the wind industry. We h`ve also mentioned, and perhaps this is being

:23:14.:23:17.

overly negative as has been suggested previously, but there are

:23:18.:23:23.

genuine critiques here. In terms of green energy policy, that is. There

:23:24.:23:27.

have been various things done but the most damaging, I think, to the

:23:28.:23:31.

United Kingdom's reputation and in terms of the financial and

:23:32.:23:37.

investment in confidence th`t is required to secure investment in the

:23:38.:23:49.

UK, is pulling the plug on carbon storage. Where companies, and they

:23:50.:23:56.

were big companies, were investing significant time and resources on

:23:57.:24:04.

the bases of this visit good word of this United Kingdom Governmdnt.

:24:05.:24:08.

Before they even had the opportunity to submit their bids, that plug was

:24:09.:24:15.

pulled and the damage was done. You cannot underestimate the impact that

:24:16.:24:20.

that and all of the incremental tax on green energy policy have. We are

:24:21.:24:26.

missing a major trickier. This is a huge opportunity to grow our skill

:24:27.:24:35.

base and do it in differing parts of the United Kingdom, and to send out

:24:36.:24:39.

damaging messages really dods question commitment not just of the

:24:40.:24:47.

UK of the Government to cle`n energy and the talk about Paris and the

:24:48.:24:50.

global climate change deal but actually to the economy and

:24:51.:24:55.

investment more widely. The last bit I would like to touch on, and it was

:24:56.:25:00.

mentioned by the honourable member for Dundee East, the green

:25:01.:25:03.

investment bank, something supported by this Government, I think by the

:25:04.:25:08.

entire chamber when it was debated before I was here, that is ` shining

:25:09.:25:12.

example of how you would address market failure. How you can ensure

:25:13.:25:18.

that the investment was dirdcted to areas where you think they `re right

:25:19.:25:23.

and given the support that the nascent industries need to get off

:25:24.:25:27.

the ground. We have repeatedly criticised what is proposed and

:25:28.:25:33.

again we will oppose the privatisation of the green

:25:34.:25:36.

investment bank if there ard not cast iron assurances that the remit

:25:37.:25:45.

will be protected. Post Parhs, the rules of the game have changed. I

:25:46.:25:51.

think the UK, Scotland, havd a chance to seize the benefit of that.

:25:52.:25:56.

Scotland is ready but I fear that as part of Tory Britain we are being

:25:57.:26:07.

left behind. Thank you. I al very grateful to have the opporttnity to

:26:08.:26:11.

speak. I have to say, I agrde with my right honourable friend the

:26:12.:26:15.

member for Brock Stowe and `lso the honourable friend, the membdr for

:26:16.:26:20.

The Cotswolds. The opposition benches have pasted eight -, painted

:26:21.:26:25.

a pretty gloomy picture this afternoon. The state of the UK's

:26:26.:26:30.

economy has improved signifhcantly since Labour's great recesshon, and

:26:31.:26:37.

now our members have mentioned - as members have mentioned, it hs

:26:38.:26:40.

growing faster than any othdr G nation. This has largely bedn a

:26:41.:26:44.

function of rising employment and I would hope that all members of the

:26:45.:26:47.

House would welcome this rise in employment. However, the economic

:26:48.:26:53.

growth has not been because of productivity and improvement in

:26:54.:26:56.

productivity, and as my right honourable friend has mentioned we

:26:57.:27:02.

are not looking at addressing the productivity issue, because it is

:27:03.:27:05.

one that has been a long-term problem affecting our econoly, and

:27:06.:27:09.

one which successive governlents have failed to tackle. With our

:27:10.:27:14.

productivity consistently l`gging behind that of other major

:27:15.:27:25.

economies. So I would challdnge the notion... Publishing the

:27:26.:27:31.

productivity plan last summdr. This recognition that addressing this gap

:27:32.:27:34.

will be key to ensuring that sustainable recovery, a long-term

:27:35.:27:39.

successful economy, and to live in the end our long-term econolic plan.

:27:40.:27:45.

Although we have to be clear to recognise that this is not simply

:27:46.:27:50.

going to happen overnight. The productivity plan outlines 05 key

:27:51.:27:53.

areas which need to be addrdssed. They are built upon two pillars

:27:54.:28:00.

including long-term investmdnt and promoting a dynamic economy. This

:28:01.:28:07.

includes measures to promotd and encourage trade and export, and it

:28:08.:28:10.

is this I would like to focts on this afternoon, like many mdmbers.

:28:11.:28:17.

The exporting is great camp`ign I hope, will inspire and promote

:28:18.:28:21.

thousands of new businesses to export. Firms that do export are

:28:22.:28:26.

more productive, more innov`tive, and less likely to go out of

:28:27.:28:30.

business, and it is for this reason that I'm jointly hosting and exports

:28:31.:28:35.

of event in Canada next week, with UKTI and the chamber of Comlerce.

:28:36.:28:43.

This will be an opportunity for small, local small and meditm-sized

:28:44.:28:48.

businesses to understand wh`t global opportunities exist, the benefits of

:28:49.:28:51.

exporting and also finding out what practical help is available. The

:28:52.:28:59.

export experiences ATP group are an excellent example of the power and

:29:00.:29:03.

opportunities that are available in the export market. I would like to

:29:04.:29:07.

invite my right honourable friend the member for Brock Stowe to come

:29:08.:29:16.

and visit ATP with me. They are based in Cannock Would, and ATP is

:29:17.:29:22.

your's largest independent manufacturer of automated

:29:23.:29:29.

electronics. Essentially, rdbuilding car parks, for example gearboxes, to

:29:30.:29:35.

the specifications of the original product, using reclaimed,

:29:36.:29:40.

re-engineered and new parts. Their clients include Ford, Land Rover and

:29:41.:29:46.

Volvo to name a few. Exports make up two thirds of their business and

:29:47.:29:49.

they are exporting to around 35 countries. During the last xear

:29:50.:29:56.

alone, their international trade has increased by over 57%. ATP have

:29:57.:30:03.

shown that the best ways to address productivity and increase exports is

:30:04.:30:09.

by investing in skills, devdlopment, new technology and R and D two

:30:10.:30:19.

client requirements. I would be delighted to come and visit ATB

:30:20.:30:23.

They sound like an excellent success story with many lessons to be

:30:24.:30:27.

learned from other companies, so I accept the invitation gladlx. I am

:30:28.:30:34.

thrilled that she will join me to visit ATP. I know they will be

:30:35.:30:36.

incredibly pleased, too. This 1 trillion export targdt to be

:30:37.:30:57.

met by 2020 and end up seeing 1 0 thousand more companies exporting by

:30:58.:31:04.

this point. I will happily give way. I take what she says about @TP and

:31:05.:31:11.

her constituency, but it is clearly the case that the UK is a ndt

:31:12.:31:19.

importer of automotive prodtcts Our largest engineering industrx is a

:31:20.:31:23.

net importer basically from Europe. The plan has not worked. Thd oink

:31:24.:31:32.

eyeing going to make is that we are trying to increase exports, and I

:31:33.:31:36.

will come onto a few points relating to that. The productivity plans

:31:37.:31:41.

outlined several measures to help meet this target, including building

:31:42.:31:47.

stronger links with emerging markets, China, India Brazil.

:31:48.:31:59.

My honourable friend the melbers of The Cotswolds made a point hn terms

:32:00.:32:05.

of extending the trade access programme. Based upon ATP's

:32:06.:32:11.

experience of exporting, and I would like to raise a number of other

:32:12.:32:15.

issues and challenges faced by exporters, which I would like the

:32:16.:32:19.

minister to consider. They fall into three categories, including red tape

:32:20.:32:28.

and competitiveness, which represent barriers to exporting. Taking the

:32:29.:32:33.

uncertainty first, that partly comes out because of the market btt the

:32:34.:32:37.

issue I would like to particularly focus on is that of HM Customs

:32:38.:32:42.

impounding shipments for random checks. That can be really difficult

:32:43.:32:52.

when importing and exporting, when a just-in-time ordering mentality is

:32:53.:32:55.

commonplace. The UK is not `lone in this issue. The question to the

:32:56.:33:01.

minister is whether we can balance the understandable need to lonitor

:33:02.:33:06.

shipments whilst at the samd time providing more certainty to those

:33:07.:33:09.

firms that are importing and exporting. In terms of red tape

:33:10.:33:17.

this is an issue that busindsses regularly reference and it hs true

:33:18.:33:18.

here and abroad. Customs warehousing is a facility

:33:19.:33:39.

for importers so that they can delay VAT pavements until the point when

:33:40.:33:44.

the goods leave the customer's warehousing facility or entdr

:33:45.:33:48.

another customs procedure. @ccording to ATP this is an excellent service

:33:49.:33:54.

for importing parts. However the red tape associated with it is

:33:55.:34:00.

cumbersome. As such ATP no longer uses the facility as the levels of

:34:01.:34:05.

paperwork outweigh the benefits This means that an excellent

:34:06.:34:08.

facility has been and are utilised. I would like to ask the Minhster to

:34:09.:34:12.

review this facility and look at ways in which the paperwork can be

:34:13.:34:16.

reduced and simplified so that it can be used by those who have less

:34:17.:34:21.

capacity to deal with red t`pe and larger organisations. The honourable

:34:22.:34:29.

lady makes an important point about bureaucracy and the role of border

:34:30.:34:33.

control. The government is reviewing this at the moment with its border

:34:34.:34:40.

programme. At the moment 92$ of consignments are customs cldared in

:34:41.:34:44.

five seconds but her constituents are clearly having difficulties I

:34:45.:34:48.

will talk to the Trade Minister on her behalf and look to thesd

:34:49.:34:55.

problems. I am grateful for the update in terms of the revidws and I

:34:56.:34:59.

look forward to more inform`tion. I will also feed that back to ATP who

:35:00.:35:03.

are not using the facility `t the moment and maybe they would like to

:35:04.:35:09.

use it again. Turning to competitiveness, the costs `nd risks

:35:10.:35:13.

of a sporting can be off-putting. If we are really serious about

:35:14.:35:18.

encouraging exports surely we should look at ways to incentivise

:35:19.:35:22.

businesses to do so, potenthally through tax breaks. One tax which

:35:23.:35:27.

can be a burden to exporters is Air Passenger Duty. It is in re`lity

:35:28.:35:33.

attacks on exports. ATP spends thousands of pounds a year hn taxes

:35:34.:35:38.

alone. Every time they signdd deals they must travel abroad and the

:35:39.:35:43.

costs over when you are significant. We must realise that ADP like many

:35:44.:35:49.

businesses are competing in a global market. Therefore an is Air

:35:50.:35:52.

Passenger Duty makes them ldss competitive interims of contract and

:35:53.:35:57.

every -- owner is duties make them less competitive in terms than other

:35:58.:36:05.

companies. While some tried to avoid this tax by booking tickets abroad

:36:06.:36:09.

the Treasury is missing out. If that Air Passenger Duty is a devolved

:36:10.:36:13.

matter and the Scottish Govdrnment has announced that it will be cut by

:36:14.:36:19.

50% with a view to abolishing Ed, there is a need to consider the

:36:20.:36:23.

position, and it is probablx more urgent than ever. I want to ask the

:36:24.:36:27.

Minister to consider ways in which we could provide tax breaks on Air

:36:28.:36:31.

Passenger Duty for those who are exporting. I appreciate that at face

:36:32.:36:40.

value this is a kind of cut in tax revenues but I believe thesd will be

:36:41.:36:45.

overcome by the economic gahns from more businesses exporting and also

:36:46.:36:48.

exporting more of their goods and services. To conclude, Madal Deputy

:36:49.:36:55.

Speaker, with a need to address the productivity gap and the role that

:36:56.:36:58.

exporters complain closing ht, I believe it is important that we do

:36:59.:37:04.

all they can to encourage btsinesses to consider exporting. That is why I

:37:05.:37:08.

want the government to conshder ways in which we can address these three

:37:09.:37:15.

overriding issues that I've outlined today, uncertainty, red tapd,

:37:16.:37:18.

competitiveness. I will not support the motion as I do not belidve it

:37:19.:37:23.

reflects the current picturd and the government commitment to

:37:24.:37:26.

productivity and exporting. Ian Wright. Madame Jeopardy Spe`ker it

:37:27.:37:35.

is an honour and a privilegd to follow my fellow member of the

:37:36.:37:40.

business and innovations skhlls committee, a valid committed member

:37:41.:37:45.

providing insight and personal wisdom in some of the inquiries It

:37:46.:37:49.

is an honour to follow go. However I will support the motion tonhght

:37:50.:37:53.

because I agree with every word of it, to be frank. I believe ht gets

:37:54.:38:00.

to the heart of worrying structural imbalances in this economy. A

:38:01.:38:03.

reliance on consumer spending based on debt at the expense of

:38:04.:38:09.

investment, a reliance on domestic consumption at the expense of

:38:10.:38:12.

growing international markets, priority given to short-terl value

:38:13.:38:16.

extraction at the expense of long-term value creation and a

:38:17.:38:21.

reliance on Serbia's economx at the expense of manufacturing whhch can

:38:22.:38:25.

inject real productivity gahns across the country. Which r`ises

:38:26.:38:30.

living standards for all of us and for all of our constituents. As well

:38:31.:38:34.

as the points raised by the motion and would like to add the

:38:35.:38:38.

geographical imbalance in otr economy. As a north-eastern MP, I'm

:38:39.:38:44.

in London for half the week and I am back in God's own country for the

:38:45.:38:49.

remainder of the week! In tdrms of the London and the south-east

:38:50.:38:54.

economies, overheating, putting in turn pressure on infrastructure and

:38:55.:38:57.

housing supply in London, at the expense of sustainable economic

:38:58.:39:03.

growth elsewhere in the UK. Madame Debord is Speaker I welcome the

:39:04.:39:07.

focus on the motion of prodtctivity. We at the business select committee

:39:08.:39:11.

undertook our first inquiry of this Parliament and the government's

:39:12.:39:16.

productivity plan and we hope to produce our report shortly.

:39:17.:39:21.

Similarly the motion's reference in changing from grants to loans is

:39:22.:39:25.

welcome, as has already been said in the debate today, it is deeply

:39:26.:39:29.

concerning because it could undermine the competitiveness of

:39:30.:39:33.

this country. Capital is global and terms will see what they will get

:39:34.:39:37.

the best return and they cotld have leverage in in public sector

:39:38.:39:41.

investment as a result of their own private sector investment. We could

:39:42.:39:46.

be losing out, in this country, to seeing foreign direct investment.

:39:47.:39:49.

Let me finish the point. It's important that when we are

:39:50.:39:54.

attracting direct foreign investment into this country and this

:39:55.:39:57.

government and previous govdrnments have been very successful in this,

:39:58.:40:01.

we must make sure we are at the cutting edge of attracting foreign

:40:02.:40:04.

direct investment. And this puts out at considerable risk. The point of

:40:05.:41:20.

my question is about FDI. Does he agree with me that the fact that

:41:21.:41:26.

over 50% of FDI comes from the European union it has a strong case

:41:27.:41:30.

to remain in the European Union to encourage more in the futurd?

:41:31.:41:34.

That is important and to follow on from what the honourable gentleman

:41:35.:41:41.

was saying, I think that firms are making investment decisions but it

:41:42.:41:46.

is not just bad market but because they can see the UK as a springboard

:41:47.:41:58.

into the largest consumer on Earth. Japanese firms not just herd for the

:41:59.:42:05.

domestic market, but for a springboard into the whole Duropean

:42:06.:42:11.

market, and we risk that at real peril. I want to talk about trade.

:42:12.:42:13.

Trade performance is a good barometer of economic health but

:42:14.:42:16.

both at a micro and macro ldvel At a macro level, a billion to trade

:42:17.:42:19.

performance contributes to dconomic growth and helps to provide a

:42:20.:42:25.

surplus. The motion mentions trade deficit and goods of ?123 bhllion in

:42:26.:42:35.

2014. In that year, the current front, the biggest we have seen in

:42:36.:42:40.

post war history. For much of the past 30 or 40 years or so the trade

:42:41.:42:44.

deficit has been offset by investment from overseas. However,

:42:45.:42:50.

and most ominously, net prilary income derived from assets `broad

:42:51.:42:55.

has fallen from 3.3% of GDP to .1% in 2014. I think the ministdr should

:42:56.:42:59.

outline in her response what the government's view is on this matter

:43:00.:43:04.

because it has been very quhet on what is an incredibly cruci`l

:43:05.:43:08.

economic issue. I have menthoned macro, but in micro level, dxporting

:43:09.:43:12.

is very positive, especiallx for firms. It is good for the whder

:43:13.:43:16.

economy too. The evidence stggests an exporting business tends to be

:43:17.:43:21.

successful, and socially aw`re. And exporting Company tends to dmploy

:43:22.:43:24.

more workers and offer bettdr wages than an equivalent non-exporting

:43:25.:43:28.

company. Companies that exports have been shown to be more productive and

:43:29.:43:32.

invest more in research and develop them. There is a strong link between

:43:33.:43:37.

exporting and innovation. A business with a desire to export overseas

:43:38.:43:40.

more often than not has the discipline, the ambition, and that

:43:41.:43:45.

entrepreneurial flourish to develop new products and services that will

:43:46.:43:50.

better serve the new export markets, there will be sensitive and

:43:51.:43:53.

responsive to customer wishds, always the hallmark of a successful

:43:54.:43:57.

business. It is that the possibility of a virtuous circle for exporting

:43:58.:44:01.

businesses where they becomd more exposed to new demands, and

:44:02.:44:05.

increased, vision, which makes them more productive, Howard looking and

:44:06.:44:10.

better disposed to thinking of looking towards new protector

:44:11.:44:13.

improved profitability. On `verage, according to the British gels of

:44:14.:44:17.

commerce, businesses that export growth 20% more than businesses that

:44:18.:44:22.

don't. We need to encourage that much, much, more, because f`r too

:44:23.:44:28.

few British firms provide good and services that could be provhded

:44:29.:44:33.

against the world, export, only one in five British firms do so. Today

:44:34.:44:41.

pull motion refers to the UK's poor export performance. With thd

:44:42.:44:44.

greatest of respect to the party who tabled the motion, I would go

:44:45.:44:47.

further. I think our trade performance over the past 30 years

:44:48.:44:52.

or so has been dire and woeful, declining markedly with no genuine

:44:53.:44:57.

prospect of improvement for the future. The UK accounted for one in

:44:58.:45:02.

ten of the world's exports hn 1 50, now it is less than 3%. Of course

:45:03.:45:08.

emerging economies would always have resulted inevitably in a relative

:45:09.:45:11.

decline of global market sh`re for British goods and services, but not

:45:12.:45:16.

at the rate that the UK has unfortunately experienced. When

:45:17.:45:20.

received the growing world dconomy, we see that world trade is forecast

:45:21.:45:26.

to expand by $250 trillion by 2 50, we should have across the country

:45:27.:45:32.

and with government in a coordinated way, and efforts to ensure that we

:45:33.:45:35.

capture as much of that growth in the world economy as possible for

:45:36.:45:43.

British firms. He is making some very important points. He is right,

:45:44.:45:48.

I believe, in saying there hs a challenge here for more bushnesses

:45:49.:45:52.

to step up to the plate and move into exporting. Does he agrde with

:45:53.:45:55.

me this is symptomatic of a real cultural change that needs to

:45:56.:45:59.

happen, that won't just involve government but also businesses

:46:00.:46:01.

themselves looking at what they have been doing over the last Phtket

:46:02.:46:03.

decades and years and moving further forward? The honourable gentleman

:46:04.:46:08.

has a fantastic track record in talking abott trade

:46:09.:46:29.

and investment and making stre that we boost our sales of exports across

:46:30.:46:32.

the world. He makes an important point, I will come onto that in a

:46:33.:46:35.

moment in respect of which should be a to do. I want to refer to the UK's

:46:36.:46:39.

trade gap in November last xear it was ?3.2 billion. The trade deficit

:46:40.:46:41.

in goods was, and UK exports fell by 0.1%. The lowest growth ratd since

:46:42.:46:44.

the recession, and the only economy to see negative growth in exports.

:46:45.:46:47.

But it is not all doom and gloom. The north-east still has thd only

:46:48.:46:53.

consistent trade surplus in goods. But there is precious littld

:46:54.:46:58.

evidence of the march of thd makers, with modern manufacturing at the

:46:59.:47:03.

heart of a rebalanced econoly. This was reinforced by the ONS

:47:04.:47:07.

publication yesterday, which showed the UK manufacturing sector is now

:47:08.:47:13.

back in recession. I do fear we are sleepwalking back to the

:47:14.:47:15.

long-standing British model, prevalent over the past 40 xears or

:47:16.:47:20.

so of debt fuelled customer consumption, based upon an

:47:21.:47:22.

assumption of ever rising house prizes. That didn't work -- house

:47:23.:47:28.

prices, it didn't work in the past, never has, and is not sustahnable.

:47:29.:47:35.

As has been mentioned sever`l times, the government has set a target of

:47:36.:47:41.

?1 trillion of exports by 2020. I want the government to achidve that,

:47:42.:47:45.

it is good for firms, for the country, and we will see rising

:47:46.:47:48.

economic growth and broadenhng prosperity for everybody, btt it has

:47:49.:47:52.

to be said it is now more or less a given that the government whll fall

:47:53.:47:57.

spectacularly short of this target. Few expect it to be achieved,

:47:58.:48:00.

including the Secretary of State when he came before us in the select

:48:01.:48:08.

committee. The outlook forecast the cash value of exports to be ?64

:48:09.:48:13.

billion in 2020, 20 3% lower than its March 20 12th forecast. It is

:48:14.:48:21.

not acceptable for this house or the government or the country to simply

:48:22.:48:26.

shrug our shoulders and say it was a tough target, it was unachidvable

:48:27.:48:30.

but at least we had a go. I think we have to be more ambitious than that.

:48:31.:48:34.

It doesn't look on the basis of the evidence that government has even

:48:35.:48:38.

had a go. Strong export performance matters, which is why the sdlect

:48:39.:48:42.

committee has launched an enquiry into exports. We on the seldct

:48:43.:48:46.

committee, and I speak for `ll of us, a number of honourable

:48:47.:48:50.

colleagues in the chamber today who sit on the select committee, we all

:48:51.:48:53.

want to see that trillion pound target achieved but given the

:48:54.:48:57.

enormous shortfall forecast, we need to see a vigorous focus on changing

:48:58.:49:00.

course and in Barking on policies that result in improved performance,

:49:01.:49:05.

and I have not seen the govdrnment to demonstrate that step ch`nge

:49:06.:49:09.

Will the Minister outline what is being done differently to ensure we

:49:10.:49:13.

can get as close to that trhllion pound target as possible? What

:49:14.:49:17.

Bective -- active steps is the government taking to ensure that

:49:18.:49:20.

100,000 more companies are dxporting by 2020? I will respond to the

:49:21.:49:26.

honourable gentleman's intervention. Government does not control this,

:49:27.:49:29.

they can put in place a fralework, but what are firms doing? They might

:49:30.:49:35.

have a good domestic market where they feel comfortable, but how do we

:49:36.:49:39.

ensure that they can almost put their toe in the water of exports?

:49:40.:49:44.

How can they do that? Because they will have important concerns, in

:49:45.:49:47.

respect of don't know the regulations of that country, I don't

:49:48.:49:51.

know the laws. Will I get p`id? It is too much hassle, I will just

:49:52.:49:56.

stick to the domestic market, and we need to encourage that, which brings

:49:57.:50:01.

me to the role of UKTI. Would he accept it may be a challenghng time,

:50:02.:50:06.

but if the government knows and the O BR has indicated that it lay well

:50:07.:50:11.

be missing by 35% already, that there are early warning signs Fer

:50:12.:50:16.

years in that something needs to be done, and therefore action should

:50:17.:50:21.

not be... He is right. Given that we are going to fall spectacul`rly

:50:22.:50:23.

short of this target, what hs the government going to do, in terms of

:50:24.:50:28.

revising its policy towards trade and export to ensure that wd don't

:50:29.:50:35.

miss it by 35% Bubnjic as close to that trillion pound target `s

:50:36.:50:37.

possible? Does the government think UKTI is fit for purpose? Is it

:50:38.:50:40.

significantly corrective to work with British firms to identhfy and

:50:41.:50:45.

navigate foreign markets? Wd have seen some degree of turbulence, cuts

:50:46.:50:49.

in funding and destruction that the top of its management. What does the

:50:50.:50:56.

government think? Misses to answer that directly, there is a lot of

:50:57.:51:03.

reform that can be achieved, but with the honourable member for East

:51:04.:51:07.

Lothian, would he agree that it was wrong when he said the formdr CEO of

:51:08.:51:11.

UKTI had resigned because of the budget cuts? And would he agree with

:51:12.:51:19.

me that Mrs journeyman moved to the foreign Commonwealth office to take

:51:20.:51:23.

up a new office there. And then there was a new head of UKTH, and

:51:24.:51:29.

she was put in before there was any change in the funding. Would he also

:51:30.:51:35.

confirmed that UKTI's budget, the amount from days, in 2014 to 15 was

:51:36.:51:42.

264.1 million, and for the xear 15 to 16, 338 million pounds? The right

:51:43.:51:51.

Honourable Lady is very informed in terms of clarifying in terms of

:51:52.:51:54.

personnel changes, I think that is incredibly important. The honourable

:51:55.:52:01.

gentlemen, the member of thd Cotswold, said in terms of

:52:02.:52:05.

benchmarking UKTI against other comparable trade organisations

:52:06.:52:08.

around the world, are we getting value for money for the tax payer, I

:52:09.:52:12.

think it is an important thhng and something the select committee's

:52:13.:52:17.

enquiry can look at. This is not an academic exercise. In the f`st, it

:52:18.:52:22.

was so significant to have ` trade deficit that you could bring down a

:52:23.:52:26.

government with it. I am far too young to remember, and I wasn't born

:52:27.:52:37.

in the 1970 election, but I have read about it in history, I know

:52:38.:52:40.

some people might have even been in this chamber talking about ht.

:52:41.:52:41.

LAUGHTER That is how important trade

:52:42.:52:45.

performance to be in the past. It seems to have lost that in fact of

:52:46.:52:49.

the modern age but I think we should highlight the 14th of trade

:52:50.:52:53.

deficits. Poor performance hn overseas markets act as a rdal drag

:52:54.:52:57.

on competitiveness, producthvity and rising living standards fall. The

:52:58.:53:01.

government should focus mord attention on this and how it will

:53:02.:53:05.

change track to achieve its targets. I think the whole house would be

:53:06.:53:08.

behind the Minister and the government if she could demonstrate

:53:09.:53:09.

that. Thank you very much. It is `lways a

:53:10.:53:17.

great pleasure to follow thd chair of the select committee. He gave an

:53:18.:53:27.

interesting speech. It had ` fair balance, I think. Bigger and

:53:28.:53:33.

criticism and positive views, too. Somewhat in contrast with the speech

:53:34.:53:41.

by the opposition front bench, who in both content and deliverx

:53:42.:53:48.

reminded me somewhat of the Brezhnev era, with its catalogue of

:53:49.:53:56.

unremitting misery. But, hex, that is what...

:53:57.:53:58.

LAUGHTER I shall spare the blushes of the

:53:59.:54:04.

member of the chair of the select committee for business but H would

:54:05.:54:08.

just say that unremitting mhsery is clearly what you get with socialism,

:54:09.:54:13.

which is what this country # Why this country has conshstently

:54:14.:54:20.

rejected it. I would like to add to the positive views by making some

:54:21.:54:26.

comments of my own. I do thhs with a bit of humility. If we were to look

:54:27.:54:30.

at the very important point that are in this debate, and if I max make

:54:31.:54:36.

one more point about the Labour Party, we are debating important

:54:37.:54:40.

points raised today. The ch`ir of the business select committde must

:54:41.:54:43.

be absolutely embarrassed that he only has two Labour colleagtes in

:54:44.:54:48.

the chamber, including the whip who is supposed to get people in the

:54:49.:54:52.

chamber to take part in deb`tes so let's hope that as we progrdss to

:54:53.:54:57.

date we see a bit more commhtment from the Labour Party to thd

:54:58.:55:00.

entrepreneurs, small businesses and the wealth creators in our country.

:55:01.:55:05.

We do, though, have to understand Government policies and deb`te the

:55:06.:55:10.

issues we debated today in the context of a long period of time. I

:55:11.:55:15.

think the opening spokesman for the SNP made absolutely the right point,

:55:16.:55:19.

these are long-standing isstes, but we are now going into a perhod of

:55:20.:55:25.

overcapacity and production and the transition of some may major

:55:26.:55:32.

economies. That will have an impact on the ability of companies

:55:33.:55:34.

everywhere in the world to dxport, and also I think in this we will

:55:35.:55:40.

disagree, in -- an important part when the British governed h`s to

:55:41.:55:43.

start living within our means. Both of those things have been stmmed up

:55:44.:55:49.

quite rightly by the Chancellor in terms of seeking stability `nd

:55:50.:55:52.

security. These are important issues but on the issue of trade of

:55:53.:55:57.

innovation and productivity, the entrepreneurs and business people

:55:58.:55:59.

who think about that everyd`y, I think quite low down their list for

:56:00.:56:04.

solutions to those questions will be the phrase, I better go and ask my

:56:05.:56:09.

member of Parliament. Because the truth is that the innovations, the

:56:10.:56:14.

exports, and the trade that we do, will be done by those indivhduals

:56:15.:56:18.

and I am a strong believer hn freak market capitalism. I missed wrong --

:56:19.:56:31.

in free-market capitalism. One of the benefits of the election was the

:56:32.:56:36.

change in the minister for business, having someone who understands the

:56:37.:56:39.

motivation of the person who does not talk in the years, perh`ps not

:56:40.:56:44.

millions, but is taking that first step, that first risk to invest

:56:45.:56:51.

their own money, whether in Scotland, Bedford or other parts of

:56:52.:56:54.

the world. On the issue of statistics that we talked about we

:56:55.:56:58.

should just bear in mind, bdcause a number of members have talkdd about

:56:59.:57:03.

the persistent current accotnt in balance in the UK. It has bden there

:57:04.:57:08.

for so long, we haven't really fallen apart, have we? So there must

:57:09.:57:13.

be something about that that must be hidden or going OK, and secondly,

:57:14.:57:21.

statistics, statistics and... Remember trade statistics do not

:57:22.:57:25.

include value added, and ond of the important changes in global trade in

:57:26.:57:29.

the last 30 years has been the addition of value added in sectors

:57:30.:57:34.

and that may point a differdnt picture. A thoughtful contrhbution

:57:35.:57:40.

and most of what he says interesting and potentially accurate, btt even

:57:41.:57:47.

he, I am sure, will want to agree that it is worrying, when wd see

:57:48.:57:53.

contribution to GDP growth from exports continually marked down in

:57:54.:57:57.

forecast after forecast aftdr forecast, so where there max well be

:57:58.:58:05.

good, hidden things, the general trend is working against growth in

:58:06.:58:10.

the economy. I was just abott to agree entirely with what thd

:58:11.:58:13.

honourable member says, bec`use I thought it was talking about

:58:14.:58:17.

forecasting accuracy, a tophc upon which the SNP has a very good track

:58:18.:58:22.

record, but the issue, I thhnk, is fair... The issue on marking down

:58:23.:58:29.

does point to the frailty of setting targets, and I think it is ` fair

:58:30.:58:35.

criticism of all governments when it is easy to set targets and difficult

:58:36.:58:39.

to meet some of them. Let md turn to a couple of specific points in terms

:58:40.:58:45.

of what the Government can or should be digging. A number of honourable

:58:46.:58:50.

members talked about the Government's productivity plan, and

:58:51.:58:54.

is very broad nature. I must say, I see it more as an implement`tion

:58:55.:58:59.

plan. It is about how we implement things rather than the varidty of

:59:00.:59:04.

outcomes that have an overall impact on productivity. Secondly, the

:59:05.:59:07.

Government policy on the living wage will in itself provide a substantial

:59:08.:59:12.

increase in terms of Labour productivity. The living wage is in

:59:13.:59:17.

essence a 38% pay increase for the lowest paid workers in our country.

:59:18.:59:22.

I'm sure the Government havd factored in the impact that will

:59:23.:59:27.

have. I will give way in ond second. The implications for compar`bility.

:59:28.:59:34.

That very nature of a Government push to increase the wages for our

:59:35.:59:39.

hardest workers and lowest paid workers will have a positivd impact

:59:40.:59:43.

in a market economy in improving Labour productivity. Thank xou. On

:59:44.:59:49.

the matter of the living wage, I think it is important to cl`rify in

:59:50.:59:54.

this House as has been disctssed previously that the increasd in the

:59:55.:59:59.

national minimum wage by thd UK Government is not in fact the living

:00:00.:00:04.

wage that has been set by a number of independent bodies, and they must

:00:05.:00:09.

recognise that. She is facttally correct but it is like having a

:00:10.:00:15.

beautiful sunny day with soleone consistently wanting to put a cloud.

:00:16.:00:22.

This is a major and very significant change in the British econoly. All

:00:23.:00:25.

of us should be looking to the businesses who have to now pay that

:00:26.:00:29.

increase in wages to ensure they are able to do that without leading to

:00:30.:00:35.

unemployment, and if we can focus on that, then some of her other

:00:36.:00:39.

concerns about another level of this we can move to, I think we should do

:00:40.:00:43.

that. Let's join together, support what the Government has dond, make

:00:44.:00:46.

sure our businesses can deal with that, and then look to the next

:00:47.:00:49.

stage, because there is comlon agreement across this House that we

:00:50.:00:54.

have got things too far into disparity. Thirdly on productivity,

:00:55.:00:59.

the impact of the squeeze in public sector is in of itself identifying

:01:00.:01:02.

new ways to improve the productivity we do not -- and we do not talk

:01:03.:01:09.

enough about that impact on the economy. I would have been happier

:01:10.:01:14.

to take a larger reduction hn the department's budget, the Department

:01:15.:01:21.

for the, to get the deficit down. -- Department for business, but I

:01:22.:01:23.

understand that perhaps somdthing is being held back for later. Finally,

:01:24.:01:29.

the sharing economy, which `gain are committed is looking at, it is also

:01:30.:01:40.

a another positive or productivity will stop I was very pleased to hear

:01:41.:01:44.

the ministers say that she was looking at all would talk to the

:01:45.:01:50.

possibility in which new waxs in which tax policy could support

:01:51.:01:57.

equity in business, in parthcular enabling Isas to involve th`t, as

:01:58.:02:01.

proposed in the excellent high-growth small-business report

:02:02.:02:04.

launched by my honourable friend the member for Hartlepool. I took to the

:02:05.:02:12.

last Secretary of State the Bedford business burned, an idea whdre

:02:13.:02:17.

people who cared about a colmunity could put money into a fund to

:02:18.:02:21.

support the growth of busindsses in Bedford. We do not have the

:02:22.:02:25.

advantages of Milton Keynes, Cambridge or Northampton, whth large

:02:26.:02:28.

businesses or science parks. We have to grow our own businesses. A fund

:02:29.:02:37.

in which people in a communhty can invest in grooming businessds -

:02:38.:02:44.

running businesses in their community is an idea which H think

:02:45.:02:48.

can be expanded. Building on the success that Bedford has had in its

:02:49.:02:55.

fund, I am now taking forward the idea of a Bedford community business

:02:56.:02:58.

school, so working in conjunction with the school... This is ` series

:02:59.:03:05.

of courses where anyone in the committee interested in starting a

:03:06.:03:09.

business can have a series over a four-week period of learning about

:03:10.:03:13.

PR and marketing, how to do accountancy, finance from btsiness,

:03:14.:03:17.

and the idea of community btsiness schools is an idea that can be

:03:18.:03:22.

replicated across the country. Finally, I want to make somd points

:03:23.:03:27.

specifically about the business department. I have spoken already

:03:28.:03:31.

about the potential for further reductions in the budget for

:03:32.:03:35.

business and I know the minhster is a little more fun than I am of

:03:36.:03:40.

spending taxpayers' money -, a little more fond. She would always

:03:41.:03:45.

look for efficiency. One of the constant things we hear frol

:03:46.:03:49.

businesses, Government does a lot of stuff but where do I start? So

:03:50.:03:54.

decluttering and providing some focus to what the business

:03:55.:03:58.

department does, I think, would be a help. And may I make one spdcific

:03:59.:04:04.

suggestion? You are going to be able to log on and see your own tax

:04:05.:04:10.

accounts at HM C. Why is it not possible in the business department,

:04:11.:04:14.

using a tax identification number for a company for them to bd able to

:04:15.:04:18.

log on to the business department website and see in one placd all of

:04:19.:04:23.

the possible ideas that are suitable for their business and Taylor to the

:04:24.:04:28.

specific interests of their Anthony? You will know whether it is a large

:04:29.:04:33.

or small company. The sector it works in. We did a's technology we

:04:34.:04:38.

should be able to have upfront and quickly the measures the Government

:04:39.:04:42.

is taking that are there to support them. On deregulation, for le

:04:43.:04:49.

companies, the issue is not so much how much money is being savdd, it is

:04:50.:04:55.

how much time is being saved. Very grateful. I find this quite amusing

:04:56.:05:00.

because he is actually now encouraging me to spend taxpayers'

:05:01.:05:06.

money on a survey. It sounds like a great idea but would he agrde that

:05:07.:05:09.

this is actually something that the private sector could do even better,

:05:10.:05:14.

and in particular for small businesses, said there is

:05:15.:05:17.

effectively a one-stop shop website where they can go to and get also

:05:18.:05:24.

some access to all the various supports available to them? We do

:05:25.:05:28.

not need taxpayers' money to achieve that. The minister is being somewhat

:05:29.:05:33.

in genius in suggesting that I would want to spend taxpayers' money on

:05:34.:05:36.

this. The issue is not the loney, it is the access to the business

:05:37.:05:44.

department information. If the minister today is committing that

:05:45.:05:51.

the business department... She built force the business department to

:05:52.:05:53.

deal with private sector colpanies that want to create that portal of

:05:54.:05:58.

access and given free range to do that, I'm sure she will see private

:05:59.:06:02.

capital flooding into but it needs a commitment, it needs access, and

:06:03.:06:09.

that is how his vision, not mine. -- her decision, not mine. I should

:06:10.:06:16.

think so too. I will think `bout it because I think it has many

:06:17.:06:18.

attractions, I can understand there may be things about data protection

:06:19.:06:23.

but why don't we agreed to leet and have this discussion and sed what we

:06:24.:06:29.

can achieve? I'm looking forward to the minister coming back with a

:06:30.:06:32.

recommendation to the House and of course I would be happy to leet when

:06:33.:06:38.

she has that recommendation. People say that is unfair but the truth is

:06:39.:06:42.

I think there is a very poshtive initiative here. The one thhng we

:06:43.:06:47.

know about the right honour`ble member for Broxtowe is that when she

:06:48.:06:50.

sees there is a problem to be tackled, she will go for it, and

:06:51.:06:55.

heaven help you if you stand in her way, so I am just highlighthng to my

:06:56.:07:01.

friend, the minister, that there is an opportunity here. She is the

:07:02.:07:04.

right person to go for it and of course I will support her btt the

:07:05.:07:08.

most broadening highlighted by the motion from the SNP which I shall

:07:09.:07:12.

not be supporting is that they are coming forward with ideas on some of

:07:13.:07:14.

the most important issues to affect the well-being of our country. With

:07:15.:07:20.

all the contributions today, even though MPs may be low down on the

:07:21.:07:27.

list because of -- I think they have done a service to this Housd and I

:07:28.:07:29.

commend them for it. The last six years have seen an

:07:30.:07:41.

amazing deterioration of Brhtain's external trading position. The

:07:42.:07:47.

purpose is simply to get on the record how bad it is and to try to

:07:48.:07:50.

encourage the government to do something about it. Is that there

:07:51.:08:00.

has been a global depression, we are bound to lose some track and

:08:01.:08:08.

markets. In those six years, the point is, since this governlent came

:08:09.:08:12.

to power, world exports havd increased by 30%. The world market

:08:13.:08:17.

for sales has been growing extensively. If you lose market

:08:18.:08:23.

traction in that situation, then what will you do if the global

:08:24.:08:29.

economy does start to contr`ct overall. The normal situation when

:08:30.:08:38.

you get domestic recession hs is that your own industry is forced to

:08:39.:08:43.

start to export. So, strangdly enough, if you look at Europe, the

:08:44.:08:47.

core Eurozone countries that have suffered the worst from Eurozone

:08:48.:08:52.

crisis, they have actually done well in exporting, they had nowhdre else

:08:53.:08:57.

to go, they had to export. So, Spain, Italy have doubled their

:08:58.:09:01.

exports since 2010. Ireland, which had a catastrophic fiscal inclusion,

:09:02.:09:10.

is now selling more in exports than it has ever done in its history So

:09:11.:09:15.

the point that we are trying to make to the government, they are

:09:16.:09:22.

pretending everything is all right in the international sector, it

:09:23.:09:25.

belies the fact that in that six-year period when they should

:09:26.:09:29.

have been concentrating on turning round British exports and focusing

:09:30.:09:34.

on increasing our exports and creating a bigger market sh`re, they

:09:35.:09:37.

have failed totally. They kdep adding it off, keep thinking another

:09:38.:09:41.

plan and it will get better. In fact, if you look at the nulbers,

:09:42.:09:45.

the numbers have been repeated in a number of speeches. In 2014, the

:09:46.:09:49.

last year we have full figures, UK current account deficit camd to 5.1%

:09:50.:09:56.

of GDP. The honourable membdr for Bedford has mentioned that. I will

:09:57.:10:03.

reply to his query does it latter? If you run a current account

:10:04.:10:07.

deficit, you have to to fill it somehow, you have to either borrow

:10:08.:10:10.

foreign currency from other countries, or you have to sdll your

:10:11.:10:14.

assets into the ownership of other countries. So it is no surprise

:10:15.:10:18.

therefore that large chunks of British industry are now owned

:10:19.:10:23.

abroad, our property market, owned abroad. In fact, the governlent s

:10:24.:10:29.

obsession with trying to cure its own fiscal deficit has only resulted

:10:30.:10:34.

in transferring the deficit to somebody else. And everybodx knows

:10:35.:10:39.

that when you hit something like 5% or more of your GDP as your current

:10:40.:10:45.

account deficit, your warning signs are flashing up in market places all

:10:46.:10:49.

over the world, that is unsustainable. You run that the two,

:10:50.:10:53.

three, four years and you h`ve already got a quarter of yotr GDP in

:10:54.:10:58.

hock. You cannot continue to do that, yes in normal circumstances

:10:59.:11:03.

the UK has typically ran a current account deficit, but a tiny fraction

:11:04.:11:09.

of its GDP. 2014 was the worst performance, in terms of current

:11:10.:11:13.

account deficit for the UK hn peace time. That is the government the --

:11:14.:11:17.

problem the government is rdfusing to recognise.

:11:18.:11:26.

Total production data for the UK, if you strip out the important

:11:27.:11:34.

components, UK manufacturing output is now less than it was in value in

:11:35.:11:40.

2000. During that period, Gdrmany has managed to increase by 22%. I

:11:41.:11:52.

think it would be quite reasonable to say we are almost back whth a

:11:53.:11:56.

second wave of deindustrialhsation. A lot of that has come sincd 20 0.

:11:57.:12:08.

time, but just this period of the time, but just this

:12:09.:12:13.

last X years when there was not a national emergency, something could

:12:14.:12:18.

be done. The Chancellor did not focus on what he said he was going

:12:19.:12:21.

to focus on, which was to rdbalance the economy. He promised belatedly

:12:22.:12:32.

in 2012 that he would incre`se double exports. That was a

:12:33.:12:43.

ridiculous promise then. If they just lay that target site,

:12:44.:12:47.

concentrate on the practical nuts and bolts of our exports, then we

:12:48.:12:52.

might move forward. As long as the Chancellor comes up with thd fancy

:12:53.:12:55.

proposals and doesn't delivdr, then we on the opposition benches can

:12:56.:13:06.

reasonably say you are not serious? Whatnots and bolts does he think are

:13:07.:13:08.

missing from the government's package at the moment? It is long on

:13:09.:13:14.

rhetoric, I understand that, about the shape of our export performance,

:13:15.:13:18.

but the government has done a huge amount to support those exporters.

:13:19.:13:22.

We have been languishing in the depths of a Euro wide recession I

:13:23.:13:29.

take your general point, and I don't gainsay a number of the

:13:30.:13:33.

micro-decisions the governmdnt has taken, but you are not seeing the

:13:34.:13:38.

wood for the trees. Let's sde why it is that we cannot get more

:13:39.:13:42.

investment into the manufacturing industry, why it is that thd whole

:13:43.:13:46.

tenure of the economy is anti-export. It goes to the heart of

:13:47.:13:51.

how the Chancellor has concdived his role, he tells us that we h`ve

:13:52.:13:58.

growth. But where did the growth come from? Where has it comd from in

:13:59.:14:03.

the last six years? It has come from pumping up consumption, not from

:14:04.:14:06.

investing in investment, not from selling abroad. It is from pumping

:14:07.:14:12.

up domestic consumption, and where did the extra consumption come from?

:14:13.:14:16.

Did it come from wages, there has been some wage growth in thd last

:14:17.:14:20.

few years, but if you look `t the most recent statistics, pay growth

:14:21.:14:23.

is now slumped to its lowest rate in two years, so it is not comhng from

:14:24.:14:27.

pay. It is coming from borrowing. Look at the latest consumer

:14:28.:14:33.

borrowing figures. Consumer borrowing on credit cards and

:14:34.:14:36.

overdrafts is now expanding at its fastest rate since the financial

:14:37.:14:42.

crisis. Unsecured consumer credit was up by 8.3% in November.

:14:43.:14:48.

Consumers borrow an extra 1.5 billion unsecured in Novembdr alone

:14:49.:14:52.

in the run-up to Christmas. In a period where we are facing the

:14:53.:14:56.

potential of rising interest rates, we have merely returned to

:14:57.:15:01.

unsustainable consumer debt in order to carry growth forward into 20 6.

:15:02.:15:06.

Yes, there has been growth, but the growth has come from borrowhng. All

:15:07.:15:11.

the government has done is to transfer fiscal deficit frol public

:15:12.:15:14.

sector to private individuals who are even less able to bear ht. I

:15:15.:15:20.

understand the point he is trying to make but I think he is making it too

:15:21.:15:23.

strongly to say that governlent policy is anti-export. That is not

:15:24.:15:26.

the case. What the government has been trying to do is navigate its

:15:27.:15:31.

way through very difficult dconomic situation, as I'm sure the

:15:32.:15:34.

honourable member for Dunded East would agree. That is not thd

:15:35.:15:37.

intention and I think he ovdrstates his case too far. I am glad we have

:15:38.:15:43.

moved on from me being wrong to me overstating the case, we might be

:15:44.:15:49.

making some progress! To repeat the point is in the depth of a crisis

:15:50.:15:54.

like this, the way you move from unsafe bailable bet is to move to

:15:55.:15:59.

export led growth. That is ,- from unsustainable debt. That is what

:16:00.:16:02.

some of the key countries who suffered worst from the recdssion,

:16:03.:16:06.

from the Euro crisis, they have done that, and we have not even begun to

:16:07.:16:11.

do it. If we can only do ond thing today, it is to persuade thd

:16:12.:16:14.

government benches that that is the case, then we might have made

:16:15.:16:18.

progress. He makes some intdresting points in his speech, but whll he

:16:19.:16:22.

recognise that those countrhes have had far more severe fiscal

:16:23.:16:25.

consolidation is that we have had in Britain? Indeed I do, that was my

:16:26.:16:30.

point, but they have still lanaged, in the case of Italy and Sp`in and

:16:31.:16:35.

Ireland, to double their ex,ports. One thing the Chancellor sahd he

:16:36.:16:38.

wanted to do but hasn't even begun to do. Let me just move on briefly.

:16:39.:16:43.

Why hasn't the Chancellor bden able to rebalance the economy? The truth

:16:44.:16:49.

is, under this Chancellor, previous chancellors began it, but

:16:50.:16:53.

particularly under this Chancellor, Britain has a taxation systdm that

:16:54.:16:57.

actually favours investment in physical property rather th`n

:16:58.:17:01.

long-term investment in manufacturing, and it has continued

:17:02.:17:04.

to have the banking and fin`ncial system that actually prioritises

:17:05.:17:09.

common use an extreme word, gambling, gambling of money, foreign

:17:10.:17:12.

exchange markets, rather th`n supporting manufacturing and

:17:13.:17:19.

innovation. One example, Brhtain's premier engineering company is

:17:20.:17:26.

Rolls-Royce. A company that we needed to rely on as our fl`gship if

:17:27.:17:29.

we were going to rebalance the economy towards manufacturing and

:17:30.:17:35.

exports. Let's look at the tragic history of Rolls-Royce in the last

:17:36.:17:42.

two years. Just over a year ago Rolls-Royce sold off its gas turbine

:17:43.:17:49.

business to Siemons. The thhrd largest export industry in the UK --

:17:50.:17:59.

sold it after two Siemens. What to do with ?1 billion? Did Rolls-Royce

:18:00.:18:03.

invested in a new wave of innovation, did it invest in new

:18:04.:18:08.

technology, do more research? No, the nature of the fiscal system was

:18:09.:18:12.

that it was easier for Rolls-Royce management to use that billhon

:18:13.:18:20.

pounds to buy back its shards. And that is reinforced by the ctts we

:18:21.:18:24.

have had in corporation tax. I am not in favour of raising corporation

:18:25.:18:28.

tax, I think fiscal incentives are good for industry, but the

:18:29.:18:32.

Chancellor continued to cut corporation tax, when he kndw that

:18:33.:18:37.

most of the money would acttally go into share by own products.

:18:38.:18:43.

Rolls-Royce by buying back hts own shares, it share price is something

:18:44.:18:46.

like ?10 at the early part of last year, where is the share prhce now?

:18:47.:18:53.

Half that. Our premier engineering company is now in a disastrous

:18:54.:18:58.

emotional state. In fact, that halving of the share price leans

:18:59.:19:02.

that the billion pounds it got from selling off its key turbine business

:19:03.:19:10.

to Siemens has been wiped ott. Meanwhile, the market has c`ught up

:19:11.:19:15.

on Rolls-Royce. Its key salds for engines, large wide-bodied jets

:19:16.:19:19.

those sales have started drxing up, the market has moved on to new jet

:19:20.:19:26.

engines for narrow bodied jdts. The Americans are cleaning up, because

:19:27.:19:29.

the Americans had the product ready to go into that market. So

:19:30.:19:33.

Rolls-Royce is now in seriots trouble, in fact there was now talk

:19:34.:19:37.

in the city of it being takdn over, possibly by... Would be honourable

:19:38.:19:42.

gentleman agree with me it hs very important in this house that we do

:19:43.:19:46.

not talk down one of the most outstanding British success stories,

:19:47.:19:50.

and given that he has already given this house incorrect inform`tion

:19:51.:19:55.

about the moving on the head of the UKTI, would he please agree with me,

:19:56.:19:59.

it is very important that the information he continues to put in

:20:00.:20:02.

this house is accurate, bec`use it hasn't been so far, and would he

:20:03.:20:07.

agreed to withdraw his commdnts about Dominic Journey and hhs moving

:20:08.:20:12.

on into the FCA? I will continue with what I was saying, Minhster, I

:20:13.:20:21.

am not talking down on anyone. I am trying to get the government to

:20:22.:20:24.

admit there is something seriously wrong, know I won't, I will

:20:25.:20:33.

continue. Madam Speaker, is it not important that all members, when

:20:34.:20:36.

they make a mistake, correct that mistake so that the record can show

:20:37.:20:42.

when they have given an inaccurate account of this house, especially

:20:43.:20:45.

about someone who doesn't h`ve the ability to speak in this pl`ce, and

:20:46.:20:50.

that if somebody else gives a contrary view that is based on sound

:20:51.:20:55.

information, it is beholden on the member to accept, because wd all

:20:56.:20:59.

make mistakes, if you have lade a mistake, just accept it? I think the

:21:00.:21:06.

honour all lady knows it is entirely up to the member who has made the

:21:07.:21:09.

statement whether or not he wishes to withdraw it or not, or to correct

:21:10.:21:15.

the record, but the minister has herself now twice corrected the

:21:16.:21:20.

record, so we shall move on. Thank you, Madam Deputy Speaker, H am

:21:21.:21:24.

always willing to bow to thd chair if ever I am found to have lade

:21:25.:21:28.

erroneous remarks of the ch`mber, I will always withdraw them and we can

:21:29.:21:34.

come back to that. But of course the Minister has intervened bec`use she

:21:35.:21:38.

wishes to continue to say that those of us who raise serious points about

:21:39.:21:42.

our poor economic performance are talking down British industry. Far

:21:43.:21:45.

from it, I am passionate about British industry, I want industry to

:21:46.:21:50.

grow. It is the fact the government is not doing its job on this that is

:21:51.:21:56.

the problem. I have profound respect for Rolls-Royce and the history of

:21:57.:21:59.

Rolls-Royce, for what it has contributed to this country. During

:22:00.:22:04.

World War II, Rolls-Royce M`in engineering factory was in Glasgow.

:22:05.:22:08.

The engines that powered thd Spitfires that saved Western Europe

:22:09.:22:13.

and democracy in 1940, the dngines were being produced in Glasgow by

:22:14.:22:20.

Rolls-Royce. I am second to none in my admiration of that company and

:22:21.:22:23.

its engineering history. I `m worried, though, that we ard now

:22:24.:22:26.

talking about that company being taken over by American aerospace

:22:27.:22:31.

companies because of situathon it is in. I am now worried, and it has

:22:32.:22:36.

been a matter of press commdnt in recent weeks, that the government

:22:37.:22:39.

may have to consider taking over parts of Rolls-Royce, its ntclear

:22:40.:22:45.

engineering division, if anxthing goes wrong and Rolls-Royce were God

:22:46.:22:49.

forbid, to be taken over by a foreign company. Then discovered

:22:50.:22:54.

that would be talking about nationalising bits of Rolls,Royce. I

:22:55.:22:58.

think that is quite a seriots pass to have come to.

:22:59.:23:04.

I thank the honourable gentleman for giving way. And important point

:23:05.:23:13.

about hostile foreign takeovers one of the most important ones recently

:23:14.:23:18.

was the attempt to take over AstraZeneca. I am sure that the

:23:19.:23:22.

honourable gentleman would `gree that that case concluded in the

:23:23.:23:26.

right way, protecting one of the great British assets and en`bling it

:23:27.:23:31.

to continue its long-term strategies of investment in innovation and

:23:32.:23:36.

technology. Would the honourable gentleman agree that this should be

:23:37.:23:42.

seen as a case for perhaps ` reform of the Companies Act? So we see far

:23:43.:23:48.

more long term is being built into the UK's corporate culture, so that

:23:49.:23:54.

we move to investing in resdarch and develop mud and innovation `nd

:23:55.:23:56.

skills because if we don't will never change to a more sust`inable

:23:57.:24:02.

business model. I couldn't `gree more with my honourable fridnd. One

:24:03.:24:06.

of the issues that has led to this short term outlook in the l`st 0-30

:24:07.:24:13.

years is the fact that comp`nies are not in a position to think long term

:24:14.:24:17.

themselves because the way that the City of London runs is that their

:24:18.:24:21.

shares are always in play. We need some form of company reform that

:24:22.:24:26.

allows investment to happen without it being subject to shares being

:24:27.:24:29.

shorted or issues like I've just mentioned with Rolls-Royce `nd other

:24:30.:24:34.

companies, whether money should have gone into real investment. @n

:24:35.:24:41.

interesting issue and I think the honourable member is making an

:24:42.:24:44.

important point about long-term investment. It is already on the

:24:45.:24:48.

agenda, not least to the Bank of England with the chief economist

:24:49.:24:52.

raised a point about long-tdrm investment and contract law and the

:24:53.:24:56.

need to encourage firms not just to think about shareholding but about

:24:57.:25:00.

long-term investment. Does he agree that that is the kind of thhng we

:25:01.:25:04.

need to see to encourage sm`ller firms to become bigger firms,

:25:05.:25:08.

especially in the nature of the kind of firm we need to see in the

:25:09.:25:15.

manufacturing sector? Indeed, Madam Deputy Speaker, I could not agree

:25:16.:25:19.

more that what is missing in the UK industrial structure is medhum-sized

:25:20.:25:25.

companies which export and create a value chain. Indeed we have a small

:25:26.:25:31.

number of very large companhes and a large number of very small

:25:32.:25:34.

companies. One reason we haven't been able to do that is that

:25:35.:25:42.

companies, when they grow to a certain extent need to sell out

:25:43.:25:46.

usually to foreign ownership, to raise capital. This brings le to

:25:47.:25:53.

another issue. I will not bd longer, Madam Deputy Speaker. It coles to an

:25:54.:25:57.

issue that was raised by my honourable friend from Bedford when

:25:58.:26:03.

he referred to the current `ccount deficit. Normally we have bden able

:26:04.:26:10.

to fill this deficit on a slaller basis by the fact that financial

:26:11.:26:17.

remits from acid is owned bx British companies or citizens abroad, the

:26:18.:26:20.

money coming back has outwehghed the money going back out of the UK from

:26:21.:26:28.

assets owned by foreign concerns. What has changed since 2010,

:26:29.:26:34.

dramatically, under the auspices of this government, is the bal`nce

:26:35.:26:39.

between the ownership of assets in the UK and the remit of funds abroad

:26:40.:26:45.

this is the ownership of UK assets owned abroad and money coming back

:26:46.:26:53.

here. -- versus the ownershhp. The total value of British overseas

:26:54.:26:57.

assets since 2010 has slippdd to about ?1.2 trillion. In that period

:26:58.:27:04.

the value of UK assets held by foreigners has soared from 0

:27:05.:27:08.

trillion to ?1.4 trillion. Hn other words we are now... What we own

:27:09.:27:15.

abroad is less than what is owned to you. In the balance of things the

:27:16.:27:21.

net outflow of money will mdan that we cannot cover our current account

:27:22.:27:26.

deficit. The last year for which we have figures, 2014, there w`s a bare

:27:27.:27:39.

surplus of ?2 billion in terms of a positive FDI coming in opposed to

:27:40.:27:44.

money going out. That I think has led the Chancellor into dangerous

:27:45.:27:49.

grounds. This is where we lhnk another aspect of financial wheeling

:27:50.:27:56.

and dealing in the UK versus the need for manufacturing investment.

:27:57.:28:04.

The fundamental way we have been covering our current account deficit

:28:05.:28:07.

recently is by the huge inflow of money buying up property in the UK,

:28:08.:28:12.

especially property in the City Wealthy investors have acquhred

:28:13.:28:17.

about ?100 billion worth of property in London using blind oversdas

:28:18.:28:21.

companies in the last six ydars Since 2008 that have been around

:28:22.:28:26.

28,000 individual purchases of homes, buildings and land in the

:28:27.:28:31.

capital by corporate structtres registered in external tax havens.

:28:32.:28:35.

One in ten properties in Westminster is owned by an offshore firl. We are

:28:36.:28:41.

funding our current account deficit by allowing a vast influx of cash

:28:42.:28:46.

from sure companies coming hn buying property here and we do not know

:28:47.:28:50.

that ownership, in many casds, is where that money was resulthng from.

:28:51.:28:55.

The Chancellor has not taken this into an art form, finding w`ys to

:28:56.:28:58.

get money into cover the current account deficit. This is partly to

:28:59.:29:05.

do with his new plan towards China. The Chancellor's cunning pl`n.. He

:29:06.:29:15.

makes a good point about inward investment and foreign capital

:29:16.:29:19.

acquiring assets. Is he proposing a form of capital control? Anx

:29:20.:29:22.

suggestions to meet this problem identified? I might start bx

:29:23.:29:28.

ensuring that anyone who buxs property in the UK, we know who the

:29:29.:29:33.

beneficial owner is. That mhght resolve some of the issues because

:29:34.:29:37.

we might find some of the money coming in suddenly does not come

:29:38.:29:41.

here any more because peopld do not reveal the source. The Chancellor's

:29:42.:29:45.

elitist wheeze is to open the door to Chinese cash. China has no track

:29:46.:29:50.

record in building nuclear power plants get the Chancellor h`s

:29:51.:29:53.

offered massive subsidies in the next 20 years in the hope of

:29:54.:29:58.

encouraging the Chinese to hnvest in nuclear power. So much for

:29:59.:30:03.

encouraging British manufacturing. I think this plan has everythhng to do

:30:04.:30:09.

with covering Britain's dis`strous current-account deficit. Because

:30:10.:30:11.

Chinese money coming in, foreign currency will stake and will cover

:30:12.:30:16.

the deficit. Sadly China is already eating into its capital resdrves in

:30:17.:30:21.

a bid to shore up its own ctrrency and stop its rocky banks from

:30:22.:30:25.

imploding. So I think that what we are looking at, in the next five or

:30:26.:30:30.

six years, is that we will run out of foreign currency to fill the

:30:31.:30:33.

trade gap and therefore there will be big implications for intdrest

:30:34.:30:38.

rates, big implications for our trade surplus. Madam Deputy Speaker,

:30:39.:30:43.

what we need is an industri`l policy which our colleagues have mdntioned

:30:44.:30:47.

to revive domestic money factor Instead the Chancellor has slashed

:30:48.:30:54.

the budget for innovation skills, in the autumn budget, and, the actual

:30:55.:31:03.

budget for UK trade and indtstry is being cut by ?42 million ovdr the

:31:04.:31:07.

next few yes. Yes, it is gohng up marginally this year, and yds, she

:31:08.:31:12.

is selective in choosing whhch years of looking at the budget yot can

:31:13.:31:17.

pretend there is an increasd yet after four years of funding, as

:31:18.:31:21.

announced by the Chancellor in the Autumn Statement, the UK TI budget

:31:22.:31:26.

will go down by ?42 million. How can this government pretend to support

:31:27.:31:29.

exports, pretend to double dxports when it is cutting the budgdt of the

:31:30.:31:34.

agency that we rely on to lhaise with other companies and increase

:31:35.:31:41.

exports. The Chancellor prolised to double exports. He's made shmilar

:31:42.:31:44.

promises about limiting the annual deficit and did not keep thdm. This

:31:45.:31:52.

Chancellor hasn't any clues. If he had come he would have to ilport

:31:53.:31:58.

them! Before the next speakdr we have 13 more members waiting to

:31:59.:32:03.

catch my eye. That works out at between ten and 12 minutes per

:32:04.:32:07.

speaker. If we can keep within those informal limits I would be grateful.

:32:08.:32:13.

I'm happy to announce that H will not speak for 24 when it's Like the

:32:14.:32:17.

previous speaker although I'm happy to follow the Member for East

:32:18.:32:20.

Lothian, he gave a very intdresting speech. Madam Debord is bigger, you

:32:21.:32:26.

will be pleased that I did not agree with everything he said. Sole

:32:27.:32:31.

aspects of his speech, thought, were wrong. The points were made in the

:32:32.:32:35.

right spirit although I think some of his conclusions were wrong.

:32:36.:32:40.

Initially I want to register my own interest in this debate. My

:32:41.:32:46.

constituency of Spelthorne hs a hub of local business, private

:32:47.:32:51.

enterprise. Staines was the number one business start-up, the number

:32:52.:32:56.

one area for business start,ups next. This is a tradition and record

:32:57.:32:59.

of achievement that we wish to continue. A number of peopld in the

:33:00.:33:06.

course of this very interesting and important debate have spoken about

:33:07.:33:13.

the need for an industrial strategy. Without, I feel, actually spelling

:33:14.:33:21.

out the details of this running out what such as. You would be. It is

:33:22.:33:26.

true that we could be doing better with exports. It is certainly true

:33:27.:33:32.

that we could try to increase our productivity. These general remarks

:33:33.:33:39.

come in the course of this debate, have not really been fleshed out by

:33:40.:33:47.

concrete proposals. One excdption was my honourable friend, the Member

:33:48.:33:52.

for The Cotswolds, came up with some concrete suggestions about the

:33:53.:33:56.

government's role in UK trade and industry and its action. He made

:33:57.:34:05.

some interesting points in that regard. What I wish to focus the

:34:06.:34:10.

attention of the House on is the general context. The Member for East

:34:11.:34:14.

Lothian mentioned the fact that across the Eurozone, their current

:34:15.:34:20.

account figures have actually improved. And he suggested that this

:34:21.:34:28.

was largely a consequence of increased exports. But thosd of us

:34:29.:34:33.

who have followed what went on in the Eurozone will know that they had

:34:34.:34:37.

drastic fiscal consolidation is in the course of which, they totally

:34:38.:34:43.

killed off domestic demand. They tipped the economies into rdcession.

:34:44.:34:49.

And everyone knows that if `n economy is in recession, imports

:34:50.:34:56.

will fall quite considerablx. Yes? I am grateful to my honourabld friend

:34:57.:35:00.

for giving way. We have 2 mhllion extra jobs created in this country,

:35:01.:35:05.

whereas elsewhere in the EU, as it refers to, we have a record level of

:35:06.:35:11.

youth unemployment. Absolutdly right, I take that, in the spirit in

:35:12.:35:18.

which it was mad. He is right. It is not the two mentioned that friends

:35:19.:35:23.

in the Eurozone have mentioned where we have failed. Their success in

:35:24.:35:27.

terms of the current account figures is actually a measure of fahlure.

:35:28.:35:33.

Domestic demand has been colpletely crushed by a very, very tight fiscal

:35:34.:35:37.

consolidation series of measures which we have avoided, desphte the

:35:38.:35:42.

political rhetoric we have `voided many of the severe fiscal

:35:43.:35:44.

consolidation measures that they have experienced. I accept that we

:35:45.:35:52.

have suffered partly becausd of that insofar as exports to Europd have

:35:53.:35:57.

fallen, while a growing economy here has sacked in imports from the

:35:58.:36:00.

companies were domestic dem`nd has been suppressed. The honour`ble

:36:01.:36:06.

gentleman makes an excellent point. Clearly if domestic demand hn these

:36:07.:36:09.

countries has been sharply contracting, then their ability to

:36:10.:36:20.

buy our exports is commensurable in diminished -- comments Robrddo

:36:21.:36:23.

managed and makes life harddr for our exporters. There's no qtestion

:36:24.:36:28.

about it. What I would say with respect to dish exports, with

:36:29.:36:34.

respect to our trade missions, I would say the most fundamental thing

:36:35.:36:39.

that any export or manufacttring concern would look too, is some

:36:40.:36:45.

degree of economic stabilitx in the home market. Some degree of

:36:46.:36:52.

visibility, sick some degred of responsibility on the part of the

:36:53.:36:57.

government to ensure some economic stability, that our problems are

:36:58.:37:02.

being dealt with with respect to fiscal consolidation deficits,

:37:03.:37:06.

things of that nature, and hf you speak to businesses as I do in my

:37:07.:37:09.

constituency and I am sure that many members of the House do in theirs,

:37:10.:37:15.

they will say that broadly, the government's policy, although not

:37:16.:37:23.

perfect, has been conducive, to a degree of economic stabilitx. The

:37:24.:37:28.

has done with respect to apprenticeships, with respect to the

:37:29.:37:32.

significant reduction in corporation tax, these sorts of policies have

:37:33.:37:37.

made life easier, or more attractive, for exporters and for

:37:38.:37:43.

business people in general. And so it is very difficult, when xou

:37:44.:37:48.

tackle a debate of this nattre, to divorce this issue of trade, this

:37:49.:37:53.

issue of the current account, of innovation. It's very difficult to

:37:54.:37:57.

divorce those issues from the general economic management which

:37:58.:38:02.

the government, or the general economic strategy that the

:38:03.:38:07.

government is pursuing. And on that ground, and question, it is clear

:38:08.:38:09.

that although there are manx challenges ahead, a large sdction of

:38:10.:38:15.

people feel comfortable that the government is taking the right

:38:16.:38:19.

approach to the economic management of this country. And I think that is

:38:20.:38:23.

a very, very important point to make right at the beginning.

:38:24.:38:28.

The other thing that has cole across, that I have noticed in this

:38:29.:38:35.

particular debate, is the f`ct that we talk about exports, and we talk

:38:36.:38:40.

about trade deficits and all of these quite abstract concepts as

:38:41.:38:46.

though we were living in thd 19 0s, or, I would say, earlier. Wd are

:38:47.:38:53.

talking about these metrics, this language evolved in a period when

:38:54.:38:57.

Britain was the industrial heart and motor of the world, the factory of

:38:58.:39:02.

the world, very much a Victorian, if you like model of the econoly,

:39:03.:39:10.

something which arguably persisted until 1939. But if we look `t the

:39:11.:39:14.

economy in 2016, it is diffhcult to disaggregate exporting goods from

:39:15.:39:23.

exports in services, from hxbrid types of exporting products, which

:39:24.:39:29.

are manufacturing but do have a degree of service element to them. I

:39:30.:39:34.

think a lot of this languagd, I think the honourable member for

:39:35.:39:37.

Hartlepool was referring to the trade deficits in the 60s, which he,

:39:38.:39:42.

in his recollection or in hhs reading, brought governments down.

:39:43.:39:49.

Of course, you know, every day, people looked at the trade figures

:39:50.:39:53.

in the 1960s. That was the big number. But the model of thd economy

:39:54.:39:56.

today is completely different to what was the case in 1957 or 19 0.

:39:57.:40:05.

-- 19 67. I think a lot of our debates on this particular subject

:40:06.:40:09.

are very much couched in thd language, very much reflect the

:40:10.:40:16.

concerns of a bygone era, and era which now is... It has been 50

:40:17.:40:22.

years, nearly, since the 1967 devaluation. It's crazy to conduct

:40:23.:40:25.

this debate as though nothing has happened in the last 50 years. When

:40:26.:40:30.

we look at the British economy in terms of its, in terms of the

:40:31.:40:36.

distribution and how wealth is created, the role of exports and

:40:37.:40:39.

manufacturing, it is quite true that these things, certainly in the case

:40:40.:40:44.

of manufacturing, have diminished. But I would argue that a lot of that

:40:45.:40:48.

is a function of the evolving nature of the British economy. If xou were

:40:49.:40:51.

to look at the economic history of Britain, we have gone through a lot

:40:52.:40:54.

of different phases of economic life. The phase at which we

:40:55.:41:03.

manufactured huge amounts of secondary, in terms of, indtstry,

:41:04.:41:10.

that has gone, sadly. I mean, I was looking out, someone mentioned the

:41:11.:41:14.

steel industry and said how terrible it was that the government had not

:41:15.:41:18.

subsidised and protected thd steel industry. If you look at thd actual

:41:19.:41:23.

steel industry itself, a man called Wolfgang Edder is the head of the

:41:24.:41:28.

International steel Council, and he has said that in terms of c`pacity

:41:29.:41:32.

in Europe, there is something like 200 million tonnes and for that to

:41:33.:41:37.

be sustainable, capacity in Europe, he is saying it should be h`lved.

:41:38.:41:41.

There's overcapacity in European steel makers. This idea that we can

:41:42.:41:50.

somehow subsidised things endlessly, and on an unproductive basis, is to

:41:51.:41:56.

be wrong. I thank the honourable gentleman for giving way. I don t

:41:57.:42:00.

think anyone is asking for subsidies. I think what the steel

:42:01.:42:04.

industry in the UK is asking for is a level playing field. What we see

:42:05.:42:09.

now is the massive dumping of Chinese steel, which is indded

:42:10.:42:13.

heavily subsidised, 70% of Chinese steelmakers are state-owned,

:42:14.:42:19.

dragging down the price of steel, which is crippling the Brithsh steel

:42:20.:42:22.

industry. I really don't thhnk this is about subsidies. This is about

:42:23.:42:29.

smart regulation, about pro`ctive intervention by government, taking

:42:30.:42:34.

action, answering questions afterwards. And also, I would like

:42:35.:42:38.

to seek reassurances that the government will not be supporting

:42:39.:42:42.

China's application to have market economy status, which will

:42:43.:42:45.

completely undermine any attempt on anti-dumping. This is about

:42:46.:42:51.

proactive regulation and intervention, not subsidy. H accept

:42:52.:42:54.

the honourable gentleman's intervention and I think he makes a

:42:55.:42:57.

good point with respect to the practices of China and their export

:42:58.:43:02.

practices. But the general point I wanted to make what the stedl

:43:03.:43:05.

industry itself believes, and it is not a British problem but a European

:43:06.:43:10.

one, it says that in terms of the structure of the industry, there is

:43:11.:43:13.

overcapacity in Europe. If that is the case, there's no governlent

:43:14.:43:17.

action in the world, franklx, that is going to push the water tphill,

:43:18.:43:23.

to mitigate against that broad situation. I digress a bit from the

:43:24.:43:29.

main point I was trying to lake I think this debate has been very

:43:30.:43:33.

helpful. I think it is a very interesting debate but my m`in

:43:34.:43:36.

concern is that I think we `re not taking into account the verx

:43:37.:43:40.

different nature of the British economy. We are still, in tdrms of

:43:41.:43:47.

the phraseology and the context of the debate, the words that `re used,

:43:48.:43:52.

and the language, we are reflecting something which has not... Has not

:43:53.:44:00.

existed for tee generations. On the matter of the steel industrx and

:44:01.:44:03.

indeed other manufacturing industries, does he not recognise

:44:04.:44:06.

there is a place for protecting these industries in terms of the

:44:07.:44:11.

high end, highly skilled manufacturing parts of, particularly

:44:12.:44:15.

the steel industry, where there is a clear market for those very

:44:16.:44:20.

important, high-end skills? Thank you. I think there's always the case

:44:21.:44:25.

for government supporting industry in terms of trying to set the table,

:44:26.:44:29.

if you like, trying to set the context and make sure the economic

:44:30.:44:32.

management is good, trying to make sure that the regulation is

:44:33.:44:38.

tolerable. The Adam Smith phrase, not mentioning him simply bdcause he

:44:39.:44:42.

was Scottish but he actuallx made some good points! You know, easy

:44:43.:44:49.

taxes and the tolerable administration of justice. These are

:44:50.:44:53.

the kind of thing that government can actually affect. When you are

:44:54.:45:01.

looking at individual industries, which are exposed to the vagaries of

:45:02.:45:06.

international markets and the massive fluctuations in price, I

:45:07.:45:10.

think it is very difficult for government to be directly involved

:45:11.:45:15.

in the game of subsidising these industries. But broadly, I just want

:45:16.:45:21.

to say in conclusion that I think it is a valuable debate and I think

:45:22.:45:23.

some very good speeches havd been made but I would like to suggest

:45:24.:45:27.

that we should look more at the way in which the British economx has

:45:28.:45:30.

evolved, instead of using all these terms which are frankly frol the

:45:31.:45:36.

1960s and before that. The structure of British industry then was very

:45:37.:45:41.

different. Drew Hendry.

:45:42.:45:47.

Deputy Speaker, I'm delightdd to be following on from the honourable

:45:48.:45:51.

member. One, particularly bdcause he mentioned in this debate about a

:45:52.:45:55.

bygone age. I tend to bring things a bit further up-to-date and talk

:45:56.:45:58.

about not only today, tomorrow and in four years' time but in fact

:45:59.:46:03.

10-20 years' time, when I t`lk about innovation. What I hope will happen

:46:04.:46:07.

is a ray of light will fall upon the government benches and the scales

:46:08.:46:10.

will fall away, and the scales will tip in favour of innovation in the

:46:11.:46:14.

government as it goes forward. Innovation is a thing that H think

:46:15.:46:19.

has been underplayed by this government. Innovation is about

:46:20.:46:23.

imagination, vision, determhnation and that word is often applhed to

:46:24.:46:27.

leaders and about leadership in itself. I know that we all `gree

:46:28.:46:32.

that innovation is a good thing I have heard many times, people

:46:33.:46:35.

talking about the Digital economy as being one of the key tenets of

:46:36.:46:41.

innovation as we move forward. Again, I would call on other members

:46:42.:46:45.

from earlier, talking about the opportunities throughout thd nations

:46:46.:46:48.

of the UK for small and medhum-sized enterprises in our economy to help

:46:49.:46:55.

us grow and develop the economy In fact, the contribution they already

:46:56.:46:58.

make across rural and urban areas of these nations. There is new

:46:59.:47:04.

technology that is availabld to assist businesses here, now, that is

:47:05.:47:11.

available for them. There are opportunities in things likd

:47:12.:47:14.

superfast computing. Superf`st computing is where many computers,

:47:15.:47:20.

high-speed computers, are whred together to do actions that would

:47:21.:47:24.

normally take days or even weeks, but can actually do these things in

:47:25.:47:29.

minutes. Companies can access that type of technology. An example I

:47:30.:47:32.

would give you is if you wanted to render animation for industry, that

:47:33.:47:36.

kind of thing could be done on superfast computer. That kind of

:47:37.:47:41.

technology is available now but it is only limited availabilitx because

:47:42.:47:44.

you need to be able to conndct to that kind of technology. Thdre are

:47:45.:47:49.

new levels of hand-held technology available to business and industry

:47:50.:47:55.

today. Things that can transform, not only business and the economy,

:47:56.:48:01.

but transform public servicds. A willingness to invest more hn

:48:02.:48:02.

providing better services for people. There are innovations and

:48:03.:48:08.

Madam Deputy Speaker, I used to watch a TV programme when I was a

:48:09.:48:16.

boy, called Tomorrow's World, about what was coming tomorrow. Things are

:48:17.:48:20.

moving faster now. The things we are talking about that we need to

:48:21.:48:25.

develop into our already here. For example, driverless car technology.

:48:26.:48:29.

Driverless car technology h`s an opportunity to transform thd way we

:48:30.:48:32.

use the roads because it can transform things in terms of

:48:33.:48:37.

industry, it can transform things in terms of rural connectivity.

:48:38.:48:39.

Suddenly, you have an opportunity to connect people in a different way,

:48:40.:48:43.

which is not discussed enough in terms of innovation by this covenant

:48:44.:48:46.

or indeed in this House in general. But these things are here and they

:48:47.:48:52.

are available to us. When you think about just one side benefit of

:48:53.:48:56.

looking at these issues properly, if there is an opportunity for

:48:57.:48:58.

driverless technology to be used across the nations of the UK,

:48:59.:49:04.

consider this: if an individual road traffic the Talladega costs ?1

:49:05.:49:08.

million or more, leaving ashde the tragic loss of human life, then if

:49:09.:49:14.

you can avoid that kind of thing by having new technology deploxed, then

:49:15.:49:19.

what you can do is actually start work... They'd your pardon, Madam

:49:20.:49:24.

Deputy Speaker -- beg your pardon, one can see the benefit in lots of

:49:25.:49:28.

different ways from embracing that. There is also the Internet of

:49:29.:49:31.

Things, something that membdrs may have come across and talked about

:49:32.:49:37.

just now but this is a real pain. We are connecting appliances,

:49:38.:49:42.

apparatus, machinery, over great distances, to operate autom`tically.

:49:43.:49:46.

There are operating 3-D printers which are now doing great things and

:49:47.:49:51.

can do mind-bending things, that would not have been considered

:49:52.:49:55.

possible just a few years ago. We have the opportunity to

:49:56.:49:59.

revolutionise our cities through a proper embracing of Smart chty

:50:00.:50:03.

technology. There is the golden opportunity around a vast rdduction

:50:04.:50:10.

of emissions, to help with our position in terms of our carbon use.

:50:11.:50:15.

These things can spur growth. They can create a lot of benefit for the

:50:16.:50:23.

economy. They can revolutionise and democratise things for us, hncluding

:50:24.:50:26.

teaching and learning, allowing greater access to subjects `vailable

:50:27.:50:31.

at the moment to just the fdw. They can grow high-quality jobs `nd

:50:32.:50:35.

provide opportunities for pdople that at the moment are still locked

:50:36.:50:40.

out. Again, I would say that these are the opportunities for young

:50:41.:50:44.

people, young girls and womdn, to get into new industries and get into

:50:45.:50:48.

industries that they have traditionally not been able to get

:50:49.:50:52.

into, like science, engineering technology and of course, IT in a

:50:53.:50:57.

more direct way. These are opportunities for, as my colleague,

:50:58.:51:01.

my friend from Dundee said darlier today, to provide inclusive growth.

:51:02.:51:07.

The digital economy in 2013 in Scotland alone was worth ?10

:51:08.:51:12.

billion. This is substantial business. Madam Deputy Speaker,

:51:13.:51:20.

entrepreneurs are already ldveraging digital technology to great success

:51:21.:51:23.

for businesses and signific`nt economic impact. But that ntmber

:51:24.:51:27.

could be increased. This is especially true, given that small

:51:28.:51:30.

businesses grow two or thred times faster, and create new jobs when

:51:31.:51:35.

they brace digital technologies The honourable member for Bedford, not

:51:36.:51:38.

in this place just now, was talking about encouraging growth with small

:51:39.:51:42.

businesses. You can encourage growth with small businesses in rural areas

:51:43.:51:47.

in difficult places to get, by helping them to embrace dightal

:51:48.:51:50.

technologies. With the aid of technology, small business can go

:51:51.:51:53.

global from day one, reaching overseas markets and talentdd

:51:54.:52:00.

potential employees. Those `re the opportunities that are therd to be

:52:01.:52:04.

embraced. But let's turn to some of the barriers just now from the UK

:52:05.:52:08.

Government. We have heard again from my honourable friend from Dtndee

:52:09.:52:11.

East this morning about the head of the small business operation at

:52:12.:52:17.

KPMG, talking about the fact that we're no longer talking abott grants

:52:18.:52:21.

for but loans. This is a barrier to success. I won't repeat the many

:52:22.:52:24.

arguments that have been made on that because I think they h`ve been

:52:25.:52:29.

made well in this House alrdady Madam Deputy Speaker. But there are

:52:30.:52:32.

also barriers in terms of the technology available to people

:52:33.:52:35.

across the nations of the UK at the moment. I welcome a commitmdnt to

:52:36.:52:43.

universal broadband. I think it is a good thing and it should be in

:52:44.:52:47.

braised fully. But what is being proposed by the UK Government at the

:52:48.:52:51.

moment is, at best, and I'm being very kindly, a bare minimum for the

:52:52.:52:57.

future. 10 megabits per second is technology from a bygone agd now. It

:52:58.:53:03.

is not good enough for commtnities going forward, particularly when you

:53:04.:53:06.

look in detail at the plans for that. When you look at the fact that

:53:07.:53:11.

actually, a lot of that is going to be bridged by satellite technology.

:53:12.:53:14.

Satellite technology is good if you have nothing else, but it is

:53:15.:53:18.

affected by whether, it has a high latency potential, and it stffers

:53:19.:53:23.

from poor uploads and gener`lly you can get up to, and this is the key

:53:24.:53:28.

term, up to 6 megabits per second with satellite broadband. That is

:53:29.:53:31.

what is being proposed for rural areas.

:53:32.:53:39.

When you consider the costs involved of satellite broadband you `re

:53:40.:53:45.

looking at between ?30 and ?100 a month for these contracts for these

:53:46.:53:49.

people to take advantage of that. So there's a lot more to be done in

:53:50.:53:55.

terms of embracing the need. I think the honourable member for ghving

:53:56.:54:00.

way. When he discusses businesses in Google areas would he agree that

:54:01.:54:05.

many small or medium-sized enterprises that have reloc`ted from

:54:06.:54:10.

city centres on a cost basis to ruble areas now are disadvantaged

:54:11.:54:15.

precisely on the grounds he talks about in terms of broadband access

:54:16.:54:17.

and that needs to be addressed by the government? I'm very gr`teful

:54:18.:54:23.

for the intervention by the honourable gentleman. He makes a key

:54:24.:54:29.

point. There is a vibrant, intelligent, work -red deer employee

:54:30.:54:34.

base in a row areas who are ready to take advantage -- work readx, to

:54:35.:54:42.

take advantage of these opportunities given by employers. He

:54:43.:54:46.

is right and I have experience of this, when you move to a rural area,

:54:47.:54:52.

like me, I was working in Whndsor at the time, lots of things were

:54:53.:54:55.

available by way of technology, to move to the high lands and suddenly

:54:56.:55:00.

find that I might have made a mistake. I am glad, I wanted to

:55:01.:55:03.

underline that I did not make a mistake and we worked through it, at

:55:04.:55:09.

some expense! But and is a barrier to people setting up businesses in

:55:10.:55:13.

all areas. If the UK Governlent wants to take a view of the feature

:55:14.:55:18.

and has to consider people `cross all parts of the regions of the UK,

:55:19.:55:24.

and make sure that people in the areas of the same opportunities to

:55:25.:55:29.

engage in business as those in the urban areas. Lunch Mac thank you for

:55:30.:55:35.

allowing another intervention. Would the honourable member agree that as

:55:36.:55:40.

well as a higher specificathon for universal broadband commitmdnt what

:55:41.:55:45.

we really need as well as a better service level provision for

:55:46.:55:49.

broadband suppliers. So a ctstomer gets what they know they ard signing

:55:50.:55:53.

up to, and once they have shgned up to and they continue to get that

:55:54.:55:57.

because sometimes customers suffer, they are not even aware of the

:55:58.:56:04.

drop-off. So agreement provhsions must be put in place as well. Thank

:56:05.:56:10.

you for that intervention. H completely agree. I think it is an

:56:11.:56:14.

important thing. I'm pleased that the government seems to havd

:56:15.:56:19.

accepted that. I believe it will make sure that contracts will be

:56:20.:56:23.

able to be changed or cancelled of the service does not live up to what

:56:24.:56:27.

is promised. I'm also pleasdd that they've accepted my suggesthon that

:56:28.:56:34.

this should also apply to mobile phone contracts. I will be chasing

:56:35.:56:43.

that shortly. I'm grateful for that point being accepted that the mobile

:56:44.:56:49.

phone contract should quickly, and the same terms. And to move onto

:56:50.:57:01.

mobile signals. An opportunhty for universal coverage to be taken

:57:02.:57:14.

properly in terms of fourth coming -- forthcoming opportunities, the

:57:15.:57:18.

new 4G service to be launchdd. This is very important, Madam Deputy

:57:19.:57:22.

Speaker, some will say, we cannot deal with it now, it is not really

:57:23.:57:27.

at. The same was said about the 4G spectrum when it was launchdd and

:57:28.:57:30.

the same said about the 3G spectrum and that was launched, and the same

:57:31.:57:35.

was said of the two G spectrum when it was launched and the othdrs

:57:36.:57:39.

failures continue. That has been a failure for business, a failure for

:57:40.:57:44.

people on 4G, 3G, and to GE. There are still parts of the UK that do

:57:45.:57:50.

not have any mobile signal `t all, this could have been challenged

:57:51.:57:54.

during the licensing regime with a mobile telephone companies when this

:57:55.:57:59.

was set up. The UK Treasury has made billions out of these licenses. It

:58:00.:58:04.

is not beyond the will of the government to look at these things

:58:05.:58:07.

and make sure that in futurd when contracts come up and they `pply the

:58:08.:58:13.

licenses, they insist that there should be full coverage, not just

:58:14.:58:18.

for urban areas, for rural `reas as well. All of this leads to `n

:58:19.:58:23.

enduring digital divide. Thdre's also a bigger threat to these isles

:58:24.:58:28.

from cyber security failures Bamba is from nuclear -- fan therd is from

:58:29.:58:36.

a nuclear threat. And yet wd are not encouraging enough people to get

:58:37.:58:39.

into the industry to make stre that we are in a position where we have

:58:40.:58:43.

defences in place. We are not encouraging young people, wd've

:58:44.:58:46.

heard the living wage mentioned in this chamber today, the livhng wage

:58:47.:58:52.

proposals from the UK Government actively disadvantaged young people

:58:53.:58:56.

at this moment in time. It hs a scandal that we treat our young

:58:57.:59:01.

people with such contempt that we do not want to encourage them to be

:59:02.:59:05.

part of the overall journey to economic success that all of us need

:59:06.:59:09.

for all people, regardless of where they live in this country. They

:59:10.:59:14.

should feel part of the culture They should feel involved and we

:59:15.:59:19.

need to stimulator that. We need to guide and help young people to get

:59:20.:59:24.

involved in new technology `nd other industries, engineering, schence, we

:59:25.:59:26.

need to make sure that they are involved in life sciences, to get

:59:27.:59:33.

those jobs that will be mord worthwhile to them and their

:59:34.:59:35.

families in the future and lake sure that we have that competitive edge

:59:36.:59:40.

and we will be able to innovate into the huge. That's particularly

:59:41.:59:44.

pertinent, Madam Debord is bigger, two young women, and still do not

:59:45.:59:49.

have the same level of opportunity to get into these industries that

:59:50.:59:55.

they should have in the 21st century. We need to work hard to

:59:56.:00:02.

innovate, to make sure that we challenge that her people. Hn

:00:03.:00:07.

Scotland the curriculum for excellence is encouraging pdople

:00:08.:00:12.

from primary school to secondary school to look at outcomes for

:00:13.:00:15.

education in the round. I'm pleased to be part of a project in Highland

:00:16.:00:23.

started a few years ago which is directly challenging the norm,

:00:24.:00:28.

working with private companhes, with government agencies like thd

:00:29.:00:32.

Highlands and Islands enterprise, working with Highland Counchl,

:00:33.:00:35.

working with the NHS and other bodies, to encourage girls `nd young

:00:36.:00:41.

women to get into and understand these skills and be able to interact

:00:42.:00:46.

with them. And it is that khnd of innovation that we will need to put

:00:47.:00:50.

in to make sure that we are embracing the digital econoly and

:00:51.:00:54.

allowing people to take part in it because, Madam Debord is bigger I

:00:55.:01:00.

will finish with this, people are embracing the digital econoly. They

:01:01.:01:05.

are using the technology now. They are grasping the opportunithes in

:01:06.:01:08.

their business and they need to be able to get the support for them.

:01:09.:01:12.

The world is moving ahead, so there is a choice. You can follow or you

:01:13.:01:18.

can read. I can't remember where I heard this, Madam Debbie Spdaker --

:01:19.:01:24.

follow or lead. It always rdminds me of the UK Government when somebody

:01:25.:01:30.

asks where all those people going, because I need lead them! D`vid

:01:31.:01:40.

Ruffley. Madam Deputy Speakdr, it is an honour to participate in this

:01:41.:01:46.

debate and follow these spedches, it is an honour to follow the

:01:47.:01:49.

honourable member for Inverness He gave a thoughtful speech. I would

:01:50.:02:00.

like to inform the House th`t two players from Macclesfield town

:02:01.:02:04.

football club are now playing for Inverness Caledonian and helping

:02:05.:02:09.

them in the SPL, good luck to them! This has been a very thoughtful and

:02:10.:02:14.

at times serious debate, with passionate speeches on both sides of

:02:15.:02:19.

the House. I congratulate the honourable member for Dunded East,

:02:20.:02:23.

who I served with briefly, thoughtful member of this House he

:02:24.:02:29.

is right to raise this subjdct today. We can all benefit from the

:02:30.:02:35.

debate. Also welcome the contributions from the membdr who

:02:36.:02:38.

brings a characteristic robtstness to this debate. Further works are

:02:39.:02:44.

needed in this area. I would like to highlight that our long-terl

:02:45.:02:48.

economic plan on this side of the House Robertson has been right and

:02:49.:02:51.

fair in the way it takes forward its work. It provides greater

:02:52.:02:58.

opportunity for businesses `nd individuals for this countrx to the

:02:59.:03:03.

ahead. And not only to ensure that we get our public finances hn order,

:03:04.:03:08.

we also protect front line services in the way that funding is `llocated

:03:09.:03:13.

and we are taking no chances with our National security and for that

:03:14.:03:17.

matter with our National economic security. We have a clear plan for

:03:18.:03:21.

making sure that button oncd again as a country lives within its means,

:03:22.:03:25.

and at the same time a plan for delivering an economy that generates

:03:26.:03:29.

more means within which to live That is an important thing. Two

:03:30.:03:36.

sides of the coin. In the stmmer budget debate I noted the portals of

:03:37.:03:43.

rebalancing our books after the Labour Party's spendthrift dars And

:03:44.:03:48.

about the importance of reb`lancing economic geography towards `n open

:03:49.:03:56.

powerhouse. It is interesting to see that on this side of the government

:03:57.:04:02.

committee is committed to decentralising power away from

:04:03.:04:05.

Downing Street as much as the SNP seems to be committed to

:04:06.:04:09.

centralising power to Bute house, where the police, Fire Servhces or

:04:10.:04:15.

further education. I give w`y. Will the honourable gentleman agree that

:04:16.:04:18.

the Scottish governor and h`s done a fantastic thing this week bx

:04:19.:04:22.

supplying half ?1 million to encourage local communities to take

:04:23.:04:25.

part in participate read budgeting, to make their own decisions. A real

:04:26.:04:34.

example of decentralisation, the same as the Scottish Governlent did

:04:35.:04:37.

to remove ring fencing for councils to let them make their own decision.

:04:38.:04:43.

I'm pleased that they are rdctifying that trend towards centralisation

:04:44.:04:46.

and I commend them for it. H will give way. Having served on ` joint

:04:47.:04:54.

Fire board. Clyde, when we tried to raise local issues we were told that

:04:55.:04:57.

was not the time of the place to do so. Honourable members on that side

:04:58.:05:06.

of the House can justify thdir position! What we are committed to

:05:07.:05:10.

doing is to decentralise. Vhtal because it gives her the power to

:05:11.:05:14.

local communities to come up with their own solutions. On a broader

:05:15.:05:18.

scale. The lessons we can ldarn from Scotland. This is fundament`l

:05:19.:05:22.

because it will encourage economic growth. It will ensure we h`ve

:05:23.:05:26.

higher rates of productivitx in exporting and success in innovation

:05:27.:05:30.

that the honourable member for Inverness was so keen to stress If

:05:31.:05:35.

we do that we can move on from those years of boom and bust delivered by

:05:36.:05:40.

the party opposite. To unlock local dynamism we are taking forw`rd

:05:41.:05:44.

important initiatives through local economic partnerships, and H think

:05:45.:05:49.

vitally important, as we sed locally in the Macclesfield area, strategic

:05:50.:05:54.

deals between city and county, as we saw in Alderley Park. Making sure we

:05:55.:05:59.

turn the tide in favour of civic renewal, uplifting rates of growth

:06:00.:06:07.

across the country. This will build on what we have done to get to

:06:08.:06:11.

record levels of employment in this country, to make sure that `ll

:06:12.:06:17.

workplace and incentivise thousands of puzzles to transform thehr lives.

:06:18.:06:22.

That is what we want to do. -- thousands of households. We want

:06:23.:06:27.

people to get on their feet. This government is committed to getting

:06:28.:06:30.

the job done. That is why wd have set challenging targets frol exports

:06:31.:06:37.

to encouraging productivity. That is why will want to lower thosd

:06:38.:06:41.

barriers that have stood for so long in the way of people setting up

:06:42.:06:44.

their own businesses and moving forward with their lives. I believe,

:06:45.:06:49.

as I've said several times before in these chambers that economic success

:06:50.:06:55.

rests on entrepreneurs, employers, exporters, and of course employees.

:06:56.:07:02.

And for all of those to be `ble to be given the opportunity to exceed

:07:03.:07:06.

an important work they do, to have that enterprising economy that we

:07:07.:07:11.

need, we need to help particularly those people seeking to do those

:07:12.:07:14.

activities and uphold those roles for the first time. We are laking

:07:15.:07:20.

progress in that area. We sde it in the new Enterprise Allowancd. That

:07:21.:07:24.

has enabled thousands of people previously unemployed, to bd set on

:07:25.:07:31.

the rewarding path of self-dmployed and employment. I'm pleased that

:07:32.:07:38.

initiatives are being taken with the founder of the Cambridge Central

:07:39.:07:41.

company to review what we c`n do to help those who are self-employed. An

:07:42.:07:46.

undeniable trend in our labour market and on this side of the House

:07:47.:07:50.

we are committed to helping those people. My friend, the honotrable

:07:51.:07:55.

member for Bedford, has highlighted key issues in Bedford. We wdre lucky

:07:56.:07:59.

enough to visit the business school together and learn much frol it The

:08:00.:08:02.

great lessons to be learned in the community and in Macclesfield the

:08:03.:08:09.

privileged within our community led initiative, to have brought forward

:08:10.:08:15.

enterprises in Macclesfield, local businesses working together to help

:08:16.:08:18.

more businesses flourish and get the advice they need to move forward.

:08:19.:08:23.

If we're going to crack down on the blockages that have led to social

:08:24.:08:28.

immobility for too long in this country, we need to help people

:08:29.:08:33.

establish themselves into fhrst time employment, become first-tile

:08:34.:08:37.

employers, and for that matter, to become importantly, first-thme

:08:38.:08:40.

exporters as well. Indeed, the honourable member for Hartldpool,

:08:41.:08:44.

not in his place at the momdnt, the chairman for the select comlittee,

:08:45.:08:48.

highlighted the deep cultur`l change that is required to get mord

:08:49.:08:52.

businesses to get exporting. It is deep-seated. We are committdd to

:08:53.:08:55.

addressing that which is whx we set such high targets as well. But

:08:56.:08:58.

getting someone to do something that the first time is not always easy.

:08:59.:09:03.

Those of us who have been involved with marketing know that it is one

:09:04.:09:07.

of the hardest tasks. I havd first-hand experience of th`t. As

:09:08.:09:11.

has been said, at the moment, only one in five businesses currdntly

:09:12.:09:14.

export anything, competitor what goes on in Germany where it is one

:09:15.:09:18.

in four. We are behind countries like Belgium and the Netherlands. It

:09:19.:09:21.

is not just Brussels bureaucracy that holds us back and it does too

:09:22.:09:26.

often but there are wider, deep-seated issues we have to

:09:27.:09:29.

address. That is why we need to make sure that we get behind these

:09:30.:09:33.

businesses, help them to know what they need to do, to crack ndw

:09:34.:09:37.

markets help them to understand what can be done to demystify thd process

:09:38.:09:43.

of exports. It is not just business and government that does th`t, it is

:09:44.:09:47.

business that plays its rold in that area as well. -- it is not just

:09:48.:09:51.

government but does that. Wd are playing our part, setting forward

:09:52.:09:54.

ambitious target and taking on the challenge of exports series lead. I

:09:55.:09:58.

welcome the appointment of the key ministerial role of Lord Matd. He

:09:59.:10:03.

has a great track record in taking forward a change agenda and getting

:10:04.:10:05.

the job done and that is wh`t we need to see more of an export as

:10:06.:10:09.

well. Because the Treasury `nd business have made great stdps in

:10:10.:10:14.

the risking the export procdss. Through the export work that UK TI

:10:15.:10:20.

does, over 48,000 businesses were supported. I think the new

:10:21.:10:23.

first-time exporters initiative which offers training and advice to

:10:24.:10:28.

businesses that needed, will be vitally important in helping to move

:10:29.:10:32.

this work forward. Export Fhnance has been improved for smalldr

:10:33.:10:35.

businesses, high value opportunities are absolutely critical at being set

:10:36.:10:41.

more easily in front of bushnesses for them to pitch for and t`ke

:10:42.:10:46.

businesses forward. UK TI should not just be about providing information

:10:47.:10:49.

but actively providing opportunities for businesses to put into, to

:10:50.:10:54.

ensure that UK plc as greatdr success in these export markets I'm

:10:55.:10:59.

pleased to note that we havd got a new chief executive at UK TH, Dr

:11:00.:11:04.

Catherine Raines, who I havd to say, I'm very pleased to hear thhs

:11:05.:11:07.

because she's a neighbour of mine in Macclesfield. As I said, we export

:11:08.:11:11.

many good things from Maccldsfield and we are now a really significant

:11:12.:11:15.

improvement in the focus on exports. In fact, the exporting is great

:11:16.:11:22.

website, UK TI's home page, is identifying the great work which is

:11:23.:11:25.

being done each day and highlighting the signposts, providing thd

:11:26.:11:30.

signposts that businesses nded to succeed in taking things forward.

:11:31.:11:34.

But there is more we need to do People have said, what should we be

:11:35.:11:38.

doing to help with exports? The Prime Minister and the Chancellor,

:11:39.:11:40.

through the error and activhties, are leading the way, not le`st the

:11:41.:11:46.

trade mission to China. -- draw their own activities. I'm stre the

:11:47.:11:49.

honourable member for Gloucdster, the chair for the China grotp, will

:11:50.:11:53.

mention this in his speech. It is quite phenomenal, what we are doing

:11:54.:11:56.

to make those contracts, help add value and win market share hn

:11:57.:12:00.

businesses in countries that are sometimes difficult to get hnto I'm

:12:01.:12:05.

very pleased again on a loc`l level to see the Chinese invest in

:12:06.:12:08.

Manchester Airport city. Thdy have got experience. When I went to China

:12:09.:12:13.

a couple of years ago, I fotnd out they build 45 airport in thd last

:12:14.:12:16.

five years. They know what they are talking about and we can link in

:12:17.:12:19.

with not only their funding but there it is period as well. Would my

:12:20.:12:25.

honourable friend give way on that very point because I thought it

:12:26.:12:28.

would be useful for him to be aware, which I'm sure he is alreadx but

:12:29.:12:31.

also members opposite from the SNP to be aware, that many of those new

:12:32.:12:34.

airport in China have been designed by a great British company, and led

:12:35.:12:39.

by the head of their airport and aviation sector who is a Scotsman

:12:40.:12:44.

based in Edinburgh. Good thhngs come from Scotland and I'm pleasdd to

:12:45.:12:47.

hear it, as well as Macclesfield! ... They are doing phenomen`l work

:12:48.:12:54.

and again, we are in a glob`l economy. The interactions wd have

:12:55.:12:57.

with the Chinese are vitallx aborted. Trade shows just c`n't be

:12:58.:13:04.

about having a shop window. These are about initiating contacts and

:13:05.:13:07.

enabling businesses to find a way to seal the deal. UK TI's role has to

:13:08.:13:12.

be even more proactive in this arena, helping roll out the red

:13:13.:13:16.

carpet for those businesses who are taking a risky decisions to move

:13:17.:13:21.

into new markets. We can't just focus on traditional export markets

:13:22.:13:24.

like North America and Europe, which has been all too comfortabld for UK

:13:25.:13:29.

businesses for decades, since the Second World War. I was massively

:13:30.:13:33.

disappointed a couple of ye`rs ago to hold a UK TI conference which was

:13:34.:13:37.

incredibly well supported in North East Cheshire, UK TI did a

:13:38.:13:41.

tremendous job. But I said, let s bring along representatives from

:13:42.:13:44.

China and India to support this and they said, "We're not going to do

:13:45.:13:48.

that because the businesses are so focused on the US and Germany". We

:13:49.:13:53.

have to shake things up. Government and business both have a role to

:13:54.:13:58.

play in this. We have the rhght focus -- we have to have thd right

:13:59.:14:01.

focus on emerging market as well as traditional ones. We need a bit more

:14:02.:14:05.

of the buccaneering spirit that the right honourable member for Brock

:14:06.:14:07.

Stone has demonstrated in this chamber today and throughout her

:14:08.:14:11.

minister real career. But jtst like a falling tree, we might ask is help

:14:12.:14:15.

for businesses is available and only a few businesses hear about it, is

:14:16.:14:20.

it really effective enough? He knew negations matter. It does not just

:14:21.:14:24.

mean government to business communication but business to

:14:25.:14:28.

business communication as wdll. We have to get a better way of

:14:29.:14:32.

communicating to businesses if we are going to step up a gear and

:14:33.:14:37.

become better at exporting hnputs, just as we have shown the world that

:14:38.:14:42.

we can be the way in exporthng financial services. Indeed, in

:14:43.:14:46.

services, we have a leading role, which should point the way forward

:14:47.:14:49.

for what we can do, for the opportunity in exporting goods as

:14:50.:14:54.

well. I would go so far to say that lets make an extra effort, let's

:14:55.:14:58.

make sure that ministers in business and across government make `n extra

:14:59.:15:02.

effort to get those banks that have been successful at exporting

:15:03.:15:04.

themselves and their servicds to helping their customers in the UK

:15:05.:15:08.

become better exporters of goods as well. There is a leading role for

:15:09.:15:11.

them to play as well. When we say that more needs to be done, when we

:15:12.:15:15.

need to do more, it is not just about what government does. We need

:15:16.:15:19.

to include businesses as well. I know the government has been doing a

:15:20.:15:23.

huge amount of work to encotrage exports. We are leading the walls is

:15:24.:15:28.

to water. I see prime-time TV adverts promoting the benefhts of

:15:29.:15:33.

export as well. -- leading the horses to water. But now thd horses

:15:34.:15:36.

need to drink and business needs to take a lead in doing that. Ladam

:15:37.:15:40.

Deputy Speaker, in conclusion let me say that we are a great trading

:15:41.:15:43.

nation but we need to be dohng more to reach our current export

:15:44.:15:47.

potential, no question. By focusing on the needs of first-time dxporters

:15:48.:15:50.

and spreading the lessons about trading history across more

:15:51.:15:54.

businesses for a vibrant and noteworthy trading future, we can

:15:55.:15:59.

spread opportunity across the country. We can revitalise the old

:16:00.:16:04.

British trading spirit. Can,do policies for a can-do gener`tion, in

:16:05.:16:11.

a can-do United Kingdom. He`ther Badelj. Thank you very much, Madam

:16:12.:16:16.

Deputy Speaker. It's a huge pleasure to speak in such an important

:16:17.:16:22.

debate, that is such great importance on these SNP backbenches

:16:23.:16:25.

and in the SNP government, H'm just sorry that the numbers on the Labour

:16:26.:16:29.

benches are so deficient but I do hate rebuke to those who have been

:16:30.:16:32.

here since the beginning and those good souls who have stuck it out and

:16:33.:16:38.

stuck with us. For my part, it is all is difficult at this st`ge in

:16:39.:16:41.

the debate to draw new ideas and new points but I would like to focus on

:16:42.:16:46.

productivity, innovation and investment, in terms of

:16:47.:16:49.

inclusiveness and equality, which is something I have to say has not been

:16:50.:16:53.

made mention of much on the government benches. My honotrable

:16:54.:16:58.

friend for Dundee East spokd passionately about the work the SMB

:16:59.:17:01.

government has done in this arena and of the importance of

:17:02.:17:03.

productivity and of inclusive growth. In closing the tradd

:17:04.:17:10.

deficit. I would like to expand upon that and in my remarks, also

:17:11.:17:14.

highlight the importance of equality, diversity and

:17:15.:17:17.

inclusiveness in any nation's drive to be productive, innovativd and to

:17:18.:17:21.

encourage investment. Madam Deputy Speaker, it was Professor Joseph

:17:22.:17:24.

Stiglitz who said that countries which are more unequal don't grow as

:17:25.:17:28.

well and are less stable. A concentration of income restricts

:17:29.:17:32.

economic growth by limiting the potential of people to contribute

:17:33.:17:36.

productively. At the same thme, inequality may restrict govdrnment

:17:37.:17:39.

investment and infrastructure, education and technology. As part of

:17:40.:17:43.

Scotland's fiscal commission, the Nobel laureate and its workhng group

:17:44.:17:46.

under the chairman, Crawford Beveridge, pointed out that since

:17:47.:17:50.

1975, the income gap had grown faster in the UK than in anx other

:17:51.:17:56.

developed country. It stated that such patterns of inequality would

:17:57.:18:00.

continue to negatively impact growth and prosperity in the long-term If

:18:01.:18:05.

we want to make the UK and hts nations and attractive placd to

:18:06.:18:09.

invest and to export from, we must have a stable and equal sochety Yet

:18:10.:18:13.

the policies pursued by this government point all too often in

:18:14.:18:17.

the opposite direction. In contrast, the Scottish Government, with much

:18:18.:18:21.

more limited powers, is devdloping a more egalitarian at economic model.

:18:22.:18:26.

Professor Stiglitz praised this model, stating that tackling

:18:27.:18:28.

inequality is the foremost challenge that many governments face.

:18:29.:18:32.

Scotland's economic strategx leads the way in identifying the

:18:33.:18:36.

challenges and provides a strong vision for change. In the mdantime,

:18:37.:18:39.

this Conservative government is pursuing policies which att`ck our

:18:40.:18:43.

fundamental freedoms and civil liberties. They risk widening the

:18:44.:18:46.

gap between rich and poor, the gender pay gap and worst of all

:18:47.:18:51.

marginalising the most in nded. They come in the form of the repdal of

:18:52.:18:56.

the Human Rights Act, the anti-worker Trade Union Bill,

:18:57.:18:59.

welfare cuts that take us b`ck to a Dickensian era, and ultimatdly a

:19:00.:19:02.

government that is balancing the books on the backs of the poor.

:19:03.:19:06.

Madam Deputy Speaker, if thhs government is you is about boosting

:19:07.:19:09.

productivity, innovation and investment, it should not ptrsue

:19:10.:19:12.

policies which damage the vdry fabric of the society it sedks to

:19:13.:19:18.

build and develop. I will ghve way. Thank you, Madam Deputy Spe`ker

:19:19.:19:22.

Perhaps the honourable membdr could assist me, how good the cre`tion of

:19:23.:19:25.

2 million new jobs being marginalising those most in need? I

:19:26.:19:31.

thank the honourable gentlelan for his intervention. Whilst we welcome

:19:32.:19:34.

the creation of any jobs and I will come onto this, productivitx is not

:19:35.:19:38.

just about paid employment, it is about how people contribute to

:19:39.:19:42.

society and also about people from all sections of society, wh`tever

:19:43.:19:45.

their ability, race or genddr, contributing. Investment in what has

:19:46.:19:52.

become known as you meant c`pital and the engagement and happhness of

:19:53.:19:55.

our people should all be part of a rounded strategy. We must ensure

:19:56.:20:00.

that across the nations of the UK, we can positively engage people and

:20:01.:20:03.

ensure they get the opportunity of good quality, long-term sustainable

:20:04.:20:08.

employment and boost productivity levels with that, whatever their

:20:09.:20:12.

race, gender, sexuality or `bility. We must operate in a societx where

:20:13.:20:16.

inclusiveness and diversity is central. I met recently with members

:20:17.:20:21.

of the Scottish Centre for voluntary organisations, who spoke about the

:20:22.:20:25.

work they are doing in how we look at employability and productivity.

:20:26.:20:28.

As CVO have undertaken extensive work on undertaking a rounddd view

:20:29.:20:32.

of the contribution people can make to the Scottish economy. Thdy are

:20:33.:20:35.

exploring the notion that bding productive is not just about being

:20:36.:20:39.

in full-time, well-paid employment but also about what kind of

:20:40.:20:42.

contribution people across the social spectrum can make as

:20:43.:20:47.

volunteers, activists Alcar`z, to name but a few. -- activists or

:20:48.:20:51.

carers. I don't think we wotld find this agreement across the House or

:20:52.:20:55.

in society that everyone can always be in full-time paid employlent and

:20:56.:20:58.

many women in particular will take a career break to have childrdn. Men

:20:59.:21:02.

may take a break to share p`rental care. Many men, although generally

:21:03.:21:06.

more women, may have to takd time out later in their careers to care

:21:07.:21:10.

for elderly parents and rel`tives. These breaks may result in ` change

:21:11.:21:14.

of career direction, setting up one's own business or indeed,

:21:15.:21:18.

long-term care of a child all elderly parent. Whatever thd case,

:21:19.:21:22.

these rules all pay an important and indeed productive part of an

:21:23.:21:26.

inclusive society. I reference as well my own sister-in-law and the

:21:27.:21:30.

experience of my own family. When she returned to work after having

:21:31.:21:33.

her first child, she could not get the contract, or the flexibhlity in

:21:34.:21:38.

her work she would have likdd. She set up her own photography business

:21:39.:21:41.

and decided to go full-time with that. I'm sure we all have cases

:21:42.:21:45.

like these across our constituencies, of women and other

:21:46.:21:48.

people starting their own btsinesses because they could not find the

:21:49.:21:51.

flexibility in the workforcd they would have liked. For some women,

:21:52.:21:55.

very often these breaks are diversions in their working life,

:21:56.:21:58.

and can have a detrimental hmpact on pay and progression. We havd debated

:21:59.:22:06.

and discussed much in this House as to the reasons and remedies that the

:22:07.:22:09.

gender pay gap. In the UK, the gender employment gap is currently

:22:10.:22:11.

10%. I'm pleased to say that in Scotland since 2007, the clhmate gap

:22:12.:22:17.

has narrowed from 10.6, to 6.3% evidence, Madam Deputy Speaker, that

:22:18.:22:22.

the greater sense of equality, inclusiveness and egalitari`n values

:22:23.:22:24.

are helping in many areas of Scottish society.

:22:25.:22:29.

How we innovate is critical if we are to drive up productivitx. We

:22:30.:22:39.

must work hand in glove with business and create the

:22:40.:22:42.

circumstances in which they can flourish. No government polhcymaker

:22:43.:22:47.

has the monopoly on wisdom but listening and engaging must be at

:22:48.:22:51.

the forefront in our minds `s we said policy. Many speakers have

:22:52.:22:55.

spoken today about the oil `nd gas industry and the challenges it now

:22:56.:22:59.

faces. Before ant and polithcs my last job was in the oil and gas

:23:00.:23:05.

sector in Aberdeen. I think today of friends and former colleaguds are

:23:06.:23:09.

under threat or have alreadx lost their jobs and I urge all mdmbers

:23:10.:23:15.

that, where appropriate we put aside politics and look at constrtctive

:23:16.:23:18.

ways in which we can help the industry. I personally learned a

:23:19.:23:23.

great deal in one of my rolds in a company I worked with, who partnered

:23:24.:23:28.

with a Scottish technology company that was a spin off from Heriot Watt

:23:29.:23:32.

University. Their technologx was providing the intelligence for an

:23:33.:23:35.

autonomous underwater inspection vehicle. The company I workdd for

:23:36.:23:39.

provided the hardware and the investment. To give a brief flavour

:23:40.:23:43.

of the potential use of the technology, while in that role gas

:23:44.:23:47.

leak offshore which if this technology had been advanced enough,

:23:48.:23:50.

could have been stopped much sooner than it was. Before it was safe for

:23:51.:23:57.

humans to go in and manuallx fix it. It has been sometimes as I left the

:23:58.:24:01.

role although I remember short time after my departure the Scottish tech

:24:02.:24:05.

company was acquired by an @merican firm, a tale too often familiar

:24:06.:24:09.

across the UK. I'm sure that all involved that it was a positive move

:24:10.:24:15.

but our to think that our own historical repetition in Scotland as

:24:16.:24:19.

a nation of innovators will mean our developing tech firms will not the

:24:20.:24:23.

acquisition by American firls as a sign of success. I'm sure that we

:24:24.:24:27.

all hope we can retain as mtch on talent as possible. In the words of

:24:28.:24:32.

one American writer, Arthur Herman, who said that Scotland invented the

:24:33.:24:36.

modern world! From the television to the telephone, penicillin, `nd even

:24:37.:24:44.

the overdraft! We are a protd nation of innovators! Everyday in

:24:45.:24:48.

laboratories, workshops, offices and customs the imagination of our young

:24:49.:24:54.

people, academics and entrepreneurs are designing solutions that could

:24:55.:24:58.

be tomorrow's solution to great challenges. Why cannot we bridge the

:24:59.:25:02.

gap between ideas, academic excellence, and productivitx.

:25:03.:25:06.

Yesterday the world rankings for universities were released, and in

:25:07.:25:10.

Scotland we saw three of thd world's leading universities, and in UK

:25:11.:25:14.

overall, we are all punching above our weight as a family of n`tions,

:25:15.:25:21.

yet a recent CBI discussion that I attended, the problem on whx

:25:22.:25:25.

productivity was lagging had many scratching their heads, givdn how

:25:26.:25:28.

well the UK does in terms of academia. I would suggest that

:25:29.:25:32.

financing and the failure of this government to listen to funding on

:25:33.:25:35.

innovation could have something to do with the challenges the TK faces.

:25:36.:25:40.

We've also spoken about manufacturing and the need to

:25:41.:25:44.

continue to drive that and `lso modernise, and especially in terms

:25:45.:25:48.

of the steel industry the Scottish Government has done all it can to

:25:49.:25:52.

better the jobs in that sector. And we hope the UK Government whll

:25:53.:25:56.

continue to push in terms of energy tariffs with the EU. In terls of

:25:57.:26:03.

Innovate UK and the move from loans to banks, the CBI director general

:26:04.:26:07.

has said the shift from grants to loans could dampen the game changing

:26:08.:26:12.

innovation, especially among smaller businesses. In Scotland we have one

:26:13.:26:17.

example which has been supported by Scottish Government and encourages

:26:18.:26:23.

young people and people retraining in the area of coding. Outptt per

:26:24.:26:30.

head per hour in Scotland h`s grown by 4% in bed 20 growth in the UK in

:26:31.:26:35.

the same period. Scottish productivity has caught up

:26:36.:26:40.

significantly with UK levels, from 90% to 98%. These trends ard

:26:41.:26:45.

encouraging and the Scottish Government is committed to hmproving

:26:46.:26:48.

them further with measures such as the living wage, the Scottish

:26:49.:26:51.

business Pledge and more encouragement for businesses to

:26:52.:26:55.

focus on improving productivity We have many great examples of

:26:56.:26:59.

companies innovating and employing their expertise in the UK or

:27:00.:27:04.

exporting. We must sustain investment to encourage mord. One

:27:05.:27:09.

company in Edinburgh specialises in software for health care, and in my

:27:10.:27:15.

own constituency are designs to elevate waste management systems

:27:16.:27:20.

across the UK. We got all mdntion fantastic local success stories but

:27:21.:27:24.

we must work together to crdate the right policies and the environment

:27:25.:27:29.

for business and people to hnnovate, export, and boost productivhty.

:27:30.:27:34.

Difference works. It is argted that profitability can be boosted through

:27:35.:27:39.

inclusion. Arianna Huffington, of the Huffington Post, rode

:27:40.:27:42.

compellingly in her book Five about redefining success as being about

:27:43.:27:47.

creating a life of well-being, wisdom and wonder. I was struck by

:27:48.:27:51.

her comments about the race to the bottom in terms of burn-out, Devon

:27:52.:27:56.

by mail dominated cultures, especially in corporate bushnesses,

:27:57.:27:59.

about who can come in earlidst and leave latest. It reminded md a

:28:00.:28:04.

little of this place! If we are to succeed across the nations of the UK

:28:05.:28:08.

we must put inclusive growth up heart of our drive to innov`te, and

:28:09.:28:12.

none of the widening gap. Today I probably will not be there because I

:28:13.:28:17.

will be in the chamber or ddbit for 100 disabled people will lobby

:28:18.:28:20.

Parliament about their concdrns over the welfare reform and work`ble

:28:21.:28:24.

They represent important section of our society who have unique skills

:28:25.:28:28.

and talents. They may have ` range of disabilities but they ard equal

:28:29.:28:33.

members of society who can `nd no doubt want to play an activd and

:28:34.:28:37.

productive role. I feel passionately about whatever the gender, race

:28:38.:28:42.

sexuality or ability of a pdrson, they represent hope and opportunity

:28:43.:28:47.

in some form. While some max not fit into this government's view of what

:28:48.:28:52.

productivity means, and thex do not specific box this does not lean they

:28:53.:28:57.

cannot play a role. We must work together to ensure that we have an

:28:58.:29:01.

inclusive society that gives everyone the opportunity to

:29:02.:29:05.

contribute and be productivd. Before I called the next big, we are

:29:06.:29:09.

getting tight for time, I whll not put on a time limit but if we

:29:10.:29:14.

restrict ourselves to ten mhnutes I can fit everyone in. Jeremy Quinn. A

:29:15.:29:20.

pleasure to follow the honotrable lady with her list of Scotthsh

:29:21.:29:25.

innovations. I did not know that the overdraft was developed in Scotland!

:29:26.:29:28.

One learns something everyd`y. What Adam Smith would have thought of her

:29:29.:29:32.

speech I do not know, it was interesting nonetheless. It was

:29:33.:29:35.

interesting to the proposal of the honourable gentleman for Dundee

:29:36.:29:41.

East, setting out the issues thought to be at the root of the problems

:29:42.:29:48.

set out in this motion. In response to my intervention, the honourable

:29:49.:29:51.

gentleman said it was 50 ye`rs are coming, these problems. To go to the

:29:52.:29:59.

problems of the last 50 years may be pushing it in a ten minute speech,

:30:00.:30:03.

or a much lesser contribution that I intend to make today. We have seen

:30:04.:30:13.

the decline of empire in thd last 50 years. We've seen the entry into the

:30:14.:30:19.

European Union. The rise of China and India and South Korea and

:30:20.:30:24.

eastern Europe, to name but of view, and of course, those huge m`cro

:30:25.:30:28.

changes have made a huge impact on our manufacturing base, the shape of

:30:29.:30:34.

this economy and the pattern of our imports and exports. At the same

:30:35.:30:38.

time though we have had a rdvolution in the service sector across the

:30:39.:30:42.

world, and a revolution in technology. Two things that are at

:30:43.:30:51.

the complete forefront. The honourable gentleman says hd would

:30:52.:30:57.

not deny the numbers. He dwdlt, understandably, on the manufacturing

:30:58.:31:00.

figures of the last quarter. Not happy set of figures. No ond on this

:31:01.:31:07.

side of the House would say this. Yet in the cause of our last year

:31:08.:31:14.

our economy grew by almost 3%, making us the fastest-growing

:31:15.:31:17.

economy in the G7, and this year the OECD forecast that would grow

:31:18.:31:22.

equally with America, also the fastest rate of growth in the G . To

:31:23.:31:29.

build on that success, to grow imports and exports in the future,

:31:30.:31:35.

and to grow innovation, we need thriving small companies, and of

:31:36.:31:39.

course we need investment. Which is why, no doubt, both sides of this

:31:40.:31:44.

House will be delighted by the record of business creation,

:31:45.:31:49.

especially than the created in 014 alone. I'm sure that both shdes of

:31:50.:31:54.

the House would be delighted to recognise that with the gendral

:31:55.:31:58.

election safely over and a new government established in the

:31:59.:32:02.

summer, investment by busindss grew by 7% in the third quarter of 2 15,

:32:03.:32:06.

impaired to the same quarter in the year before. Equally as a rdsult of

:32:07.:32:12.

that general election we have one of the lowest rates, and the p`rty

:32:13.:32:24.

perpendicularly opposite. And falling still further. In rdsponse

:32:25.:32:30.

to the honourable gentleman from Hartlepool, I recognise that that is

:32:31.:32:34.

just part of a package but ht is an important part of a package in

:32:35.:32:38.

bringing in foreign direct investment into this countrx.

:32:39.:32:42.

Something the government should be congratulated on. As is, thd

:32:43.:32:52.

benefits of being, according to the World Bank, the sixth best place in

:32:53.:32:56.

the world to do business. This motion addresses the rebalancing of

:32:57.:33:02.

the economy. No one would underestimate the importancd of

:33:03.:33:04.

manufacturing, or the importance of the figures to which the honourable

:33:05.:33:08.

member from Dundee refers. Xet you can go to business districts in

:33:09.:33:12.

London, Manchester and Glasgow where you will find, just in that business

:33:13.:33:17.

area, more technology got start ups than exist in all the EU partner

:33:18.:33:23.

company is that I could mention The UK is rated highly in this `rea for

:33:24.:33:32.

a reason. I commend the papdr which in July tackled head on manx of the

:33:33.:33:37.

issues raised today. We havd had comments raised in this deb`te that

:33:38.:33:41.

that paper was too short. I don t think the British business wants war

:33:42.:33:44.

and peace. They want simple solutions and this is what they are

:33:45.:33:52.

getting from this government. I welcome ?7 billion in research and

:33:53.:33:56.

investment, a protected scidnce budget, ?14 billion of credht being

:33:57.:34:00.

provided to 14,000 companies and is the honourable gentleman from Dundee

:34:01.:34:04.

East acknowledged, the benefits of the ?1.5 billion double challenge

:34:05.:34:09.

fund. These measures, with ` government that knows it has the

:34:10.:34:12.

clear sense of economic purpose embeds confidence. One example is in

:34:13.:34:20.

my own constituency. I'm delighted to say that in a deal with Novartis

:34:21.:34:25.

and our county council a schence park is to be created in thd heart

:34:26.:34:32.

of the town. On exports, our focus, as a government is reaping

:34:33.:34:38.

dividends. I see it from colpanies in my own constituency, where they

:34:39.:34:42.

say that a new generation of ambassadors is really pushing our

:34:43.:34:46.

export drive. They've had that direct experience and they fill it

:34:47.:34:49.

full forward. The honourabld gentleman from Hartlepool and my

:34:50.:34:53.

honourable friend from The Cotswolds referred to UKTI, we are not there

:34:54.:34:58.

yet, I think that is recognhsed across this House. I look forward to

:34:59.:35:03.

the relevant select committde producing the report on UKTH. I know

:35:04.:35:10.

that the Treasury bench is that the forefront of ensuring that TKTI is

:35:11.:35:14.

at its best for our exporters. But the level of that support is

:35:15.:35:19.

witnessed by what my honour`ble friend the Prime Minister and the

:35:20.:35:23.

Chancellor have been doing `broad, with the visit of the premidre of

:35:24.:35:30.

India, it has witnessed an hncrease in exports from China to thhs

:35:31.:35:35.

country since 2010. Sticking briefly with exports, I would cancel some

:35:36.:35:40.

caution as they did earlier in this debate, to the other side of the

:35:41.:35:46.

house. As so eloquently put by the honourable gentleman from Antrim we

:35:47.:35:50.

have got real problems in exporting at a time when our economy hs in

:35:51.:35:53.

relative terms booming and we have an extra 2 million people in work

:35:54.:35:58.

and spending money, yet our main trading partners across the Channel

:35:59.:36:02.

have been in recession. That will inevitably cause problems for our

:36:03.:36:07.

export record. In the same way I would draw attention to the

:36:08.:36:10.

honourable gentleman from Sdfton Central when he referred to our

:36:11.:36:14.

productivity. It will not h`ve escaped him, or the honourable

:36:15.:36:18.

members opposite, that what we have done to tame the excesses of the

:36:19.:36:22.

City and also the very sad consequences of what has happened in

:36:23.:36:26.

the North Sea recently, with the oil price, of which the honourable

:36:27.:36:31.

gentleman from Aberdeen spoke so eloquently, that has of course had

:36:32.:36:36.

an impact on productivity, those being two of our hires to rdceptors.

:36:37.:36:40.

And that of course has had `n impact on our activity statistic m`x. -

:36:41.:36:49.

stats. I hope the House will congratulate the government on the

:36:50.:36:52.

conditions it is creating to allow UK plc in general and those many

:36:53.:36:58.

small businesses the chance to be productive, to export, and to

:36:59.:36:59.

flourish. Sammy Wilson. I think any debate of this nature,

:37:00.:37:10.

there is perhaps the tendency for those on the opposition benches to

:37:11.:37:14.

emphasise the negatives. I know the Minister, in her attempts to

:37:15.:37:21.

head-butt the opposition and then kicked them down in her spedch, I

:37:22.:37:25.

don't mean that as an insult, actually, I'm congratulating her,

:37:26.:37:28.

she quite enjoyed it, she elphasised that, that we should not talk the

:37:29.:37:33.

economy down. I think that hs true. She highlighted and indeed lany

:37:34.:37:36.

other members have highlighted the very positive things that h`ve

:37:37.:37:40.

happened, the fact we have high growth, the fact we have crdated a

:37:41.:37:44.

lot of jobs, the fact that we have inflation under control. But while

:37:45.:37:51.

we should not knock the economy equally, I have to say that we

:37:52.:37:56.

should not be complacent about the performance of the economy. Whilst

:37:57.:38:01.

some of the headline figures have been good, and has shown th`t the

:38:02.:38:07.

government has achieved somd success in the plan which it has for the

:38:08.:38:11.

economy, nevertheless, therd are very worrying under trends. The

:38:12.:38:16.

opposition and the proposer of the motion today were right to hdentify

:38:17.:38:22.

them. Firstly, we do have a problem with our balance of payments. I know

:38:23.:38:29.

that the member, I think it was the Bedford, I hope I have got ht right,

:38:30.:38:35.

asked the question, should we worry? Of course we should worry. Hf there

:38:36.:38:42.

is more money being taken ott of the economy as the result of a balance

:38:43.:38:46.

of payments deficit, it will be deflate-gate. As was pointed out,

:38:47.:38:50.

the difference has to be pahd. Whether that is by selling `ssets,

:38:51.:38:54.

or having to borrow money from abroad, nevertheless, that hs the

:38:55.:38:59.

long-term consequence. If wd are not exporting as much as we shotld, one

:39:00.:39:07.

of the things which has been shown to improve the productivity

:39:08.:39:09.

performance of firms is exposure to foreign markets. Therefore,

:39:10.:39:16.

productivity and exports ard linked. I think we need to be concerned

:39:17.:39:21.

about it. But just to make one point, Madam Deputy Speaker. The

:39:22.:39:25.

fact we have a huge deficit with the rest of the EU, I think, maxbe, does

:39:26.:39:31.

answer some of those who sax that if we decided to leave the EU, they

:39:32.:39:34.

would close the door on us. They could not afford to close the door

:39:35.:39:38.

on such a lucrative market `s the UK has. I think that is an important

:39:39.:39:44.

point to bury mine in the whder debate about the EU renegothation.

:39:45.:39:50.

-- to bear in mind. Alex Borg performance has been poor. Our

:39:51.:39:53.

productivity performance has been poor. Indeed, it has been ddscribed

:39:54.:40:01.

as abysmal, even with the long-term trend of 2%, we are only making a

:40:02.:40:07.

10th of that in recent years. Of course, that in turn affects our

:40:08.:40:10.

competitiveness and also thd ability of the government to bring hn tax

:40:11.:40:16.

revenue. Productivity does have an important role to play, there. The

:40:17.:40:21.

fact that we won from the bottom of the seven major industrial nations

:40:22.:40:27.

in the world is something which should cause of concern. -- we are

:40:28.:40:33.

one from the bottom. An unddrlying trend we should be worried `bout is

:40:34.:40:37.

the decline in manufacturing. It is not enough to say that, well, you

:40:38.:40:41.

know, the economy evolves and we move towards service industries and

:40:42.:40:46.

there's less of a distinction between service and manufacturing

:40:47.:40:49.

industries, as has been described. Manufacturing is important. Indeed,

:40:50.:40:52.

the government, in its plan, has accepted that manufacturing is

:40:53.:40:58.

important. And yet, we find that manufacturing output has fallen

:40:59.:41:04.

Again, measured against the government's own criteria, here is

:41:05.:41:10.

another factor which we cannot be complacent about. Of course, last

:41:11.:41:14.

year, as has been mentioned in this debate today, the dependencd upon

:41:15.:41:19.

consumer demand in the growth we have been experiencing. I h`ve to

:41:20.:41:26.

say, I find that... Even thd Chancellor seems to have ignored

:41:27.:41:31.

this, tried to play it down. But why we should be concerned about

:41:32.:41:35.

government debt, which is 80% of GDP, and have no concern about

:41:36.:41:41.

consumer debt, which is 145$ of gross disposable income, is beyond

:41:42.:41:48.

me. Public sector debt is not a good basis for growth, so privatd-sector

:41:49.:41:54.

debt is not a good basis for growth either unless we can say it is going

:41:55.:41:58.

into those kinds of areas which are productive, and which yield a high

:41:59.:42:03.

return. I don't think that we can afford to be complacent. I think it

:42:04.:42:06.

is one of those on the government benches to attack those who have

:42:07.:42:11.

raised the issue today, and say that somehow or other, they are being

:42:12.:42:16.

disloyal, or hurting the economy. I think what we have got to do is try

:42:17.:42:20.

to make sure that we get thd things in perspective. I hope that I have

:42:21.:42:24.

at least acknowledge that while there have been successes, there is

:42:25.:42:28.

no cause for complacency. If we could maybe just look at thd issues

:42:29.:42:32.

which I believe need to be addressed, the first one is the

:42:33.:42:39.

whole issue of productivity. In the government's own 7-point pl`n, in

:42:40.:42:45.

fixing the foundations, there are a raft of issues which have bden

:42:46.:42:52.

highlighted. Some of them are, it is an important role for the private

:42:53.:42:54.

sector, investment by the private sector, training workers and the

:42:55.:43:00.

apprenticeship scheme is putting more and more emphasis on the

:43:01.:43:02.

private sector. But many of the measures which are listed there will

:43:03.:43:09.

require public investment. This is where I think a distinction has to

:43:10.:43:12.

be made when it comes to talking about borrowing and governmdnt

:43:13.:43:15.

spending. If public investmdnt can yield a return, then why is

:43:16.:43:21.

borrowing for that purpose ` bad thing? It is not a bad thing for

:43:22.:43:25.

firms to do it. It is not a bad thing for households to do ht, if it

:43:26.:43:29.

provides a return. So why should that kind of borrowing... Somehow or

:43:30.:43:36.

other be lumped with all, jtst general government borrowing and the

:43:37.:43:38.

government saying they can't afford to do it? If it brings that return,

:43:39.:43:45.

then it is important. And fhxing the foundations, whether ministdrs and

:43:46.:43:51.

make it or not, does requird and indicate that substantial ptblic

:43:52.:43:54.

investment is required in btilding up the infrastructure which is

:43:55.:43:58.

required to increase productivity. Increasing exports is the sdcond

:43:59.:44:05.

one. Whilst the government linisters have promised in the House of Lords,

:44:06.:44:11.

they have pledged to mobilise the whole of the government behhnd

:44:12.:44:16.

exporting, working alongsidd a more effective UK TI and better dxport

:44:17.:44:21.

finance, I wonder, have thex really lived up to the rhetoric of that?

:44:22.:44:25.

Yes, there are difficulties with Europe but Europe is not thd only

:44:26.:44:30.

market. Indeed, if we look `t the growth in world trade, why have we

:44:31.:44:33.

got such a small proportion of the additional world trade? Firls would

:44:34.:44:40.

tell us that one of the reasons this, I mean, 80% of them don't even

:44:41.:44:45.

export anyway. Sometimes because of regulation will stop some of that

:44:46.:44:48.

regulation can't be avoided, it is overseas but some of it could be

:44:49.:44:51.

dealt with by changes here. The government could make regul`tions

:44:52.:44:58.

around exporting goods less amorous. When it comes -- less own arrests.

:44:59.:45:03.

When it comes to introductions to market, how much do we use the

:45:04.:45:08.

networks that we have across the world through embassies? I know

:45:09.:45:14.

that... There is a role for regional government play. In Northern

:45:15.:45:17.

Ireland, exports have gone tp by 4% but that has been the result of hard

:45:18.:45:23.

work, by Invest in NI. Therd are lots of ways of doing it. Wd have

:45:24.:45:27.

the friends of Northern Ireland where we look at contacts in markets

:45:28.:45:30.

that we want to target, people who are expats, people who have studied

:45:31.:45:36.

in Northern Ireland and then gone back home. Can we use that network?

:45:37.:45:41.

Is there something there th`t we can use on a more UK wide basis? Do we

:45:42.:45:45.

make full use of the contacts that embassies have? I know tradd

:45:46.:45:51.

missions from Northern Irel`nd are sometimes found embassies ldss than

:45:52.:45:56.

helpful. -- have sometimes. Can we do that for those initial steps

:45:57.:45:59.

Many firms will tell you th`t they need to go several times to market

:46:00.:46:02.

before they start making thd contacts. That is expensive,

:46:03.:46:06.

especially for small and medium enterprise. What help can bd given

:46:07.:46:11.

as far as that is concerned? The last one, of course, is boosting

:46:12.:46:18.

manufacturing industry. We have had a number of contributions hdre

:46:19.:46:21.

today, many of which have highlighted the whole issue of

:46:22.:46:28.

energy costs. The steel indtstry, of course, is only one. In Northern

:46:29.:46:31.

Ireland recently, we have lost a lot of jobs from huge employers, who

:46:32.:46:37.

cited energy costs as one of the main reasons. There appears to be a

:46:38.:46:41.

schizophrenic attitude, even from the government, although it is

:46:42.:46:44.

removing subsidies from the most expensive form of electricity

:46:45.:46:49.

generation, even today, the Prime Minister at question time, on one

:46:50.:46:54.

hand saying that it was mord its pensive to produce green endrgy he

:46:55.:46:58.

boasted about the amount of green energy in the pipeline and would be

:46:59.:47:03.

brought in in the future. -, that it was more expensive to produce green

:47:04.:47:07.

energy. If that is the aim, then let's be honest, we are going to

:47:08.:47:10.

find that we make it diffictlt for some kind of manufacturers. The

:47:11.:47:16.

significant on shoring in the US has occurred has energy prices have come

:47:17.:47:21.

down. That is a lesson for ts. I will try to abide by your rtling,

:47:22.:47:25.

Madam Deputy Speaker, I've had my ten minutes and I trust that the

:47:26.:47:31.

government will take this ddbate seriously, will accept it. H accept

:47:32.:47:34.

from Northern Ireland that there is a role for regional governmdnt of

:47:35.:47:38.

late. We are going to reducd corporation tax. We have got

:47:39.:47:43.

devolution of passenger dutx for long-haul passenger routes which we

:47:44.:47:45.

believe has been important hn extending Arabella deep to `ttract

:47:46.:47:49.

more investment and bring investors into Northern Ireland. -- extending

:47:50.:47:53.

our ability to attract. Havhng the cost of travel reduced. We have

:47:54.:47:58.

undertaken other measures btt there are national measures which are

:47:59.:48:01.

beyond our control and which only central government can deal with, if

:48:02.:48:03.

we are going to deal with these issues. Richard Graham. Thank you,

:48:04.:48:10.

Madam Deputy Speaker, a gre`t pleasure to follow the honotrable

:48:11.:48:13.

member for East Antrim with using the easy as for what can be done in

:48:14.:48:16.

Northern Ireland to boost exports and growth there. -- with hhs MPs

:48:17.:48:22.

Yuften. Declaring in interest as the Prime Minister's trade envox for

:48:23.:48:25.

Indonesia, Madam Deputy Spe`ker I welcome this opposition Day debate

:48:26.:48:29.

which focuses on important hssues, the balance of the economy, the

:48:30.:48:33.

export and productivity challenges and the finance of business research

:48:34.:48:37.

and development. These are important, although sadly not

:48:38.:48:40.

important enough to attract more than five members of the official

:48:41.:48:43.

opposition but I should highlight the presence of both the melbers for

:48:44.:48:48.

Hartlepool and West Bromwich, current and former chairman of the

:48:49.:48:52.

business select committee. @nd now, lonely champions of business in a

:48:53.:48:56.

party more committed to strhkes and reshuffles than innovation `nd

:48:57.:49:01.

exports. Madam Deputy Speakdr, the member of the Dundee let us off on

:49:02.:49:08.

today's debate. -- the membdr for Dundee let us. He made some

:49:09.:49:11.

interesting points but his speech was overshadowed by what I can only

:49:12.:49:15.

describe as an overwhelming gloom, and extended rendering of the lament

:49:16.:49:21.

from Private Fraser in Dad's Army, "We're doomed!" I waited, pdn

:49:22.:49:25.

poised, for some of his proposals to lift us from this gloom. He said the

:49:26.:49:29.

UK economy should have more manufacturing. I agree, we'll do, it

:49:30.:49:34.

halved under Labour and it hs still recovering but no suggestions came.

:49:35.:49:38.

He highlighted the UK's rel`tively weak productivity but offerdd no

:49:39.:49:42.

solutions. We await the bushness paper and the select committee

:49:43.:49:46.

recommendations. He felt thdre might be a deterioration of busindss, R

:49:47.:49:52.

and D funding, but he gave no recognition to the R and D

:49:53.:49:55.

allowances and the motion of venture capital funding for smaller

:49:56.:49:58.

companies. So we know the answer, alas, from the member for Dtndee, we

:49:59.:50:03.

are still all doomed. Today, I want to try to offer some shafts of light

:50:04.:50:10.

amidst the encircling gloom. Here, I have do disagree slightly whth the

:50:11.:50:15.

member for Dundee's fellow on the Labour benches, the Shadow linister,

:50:16.:50:19.

the honourable member for Sdfton Central, who suggested that

:50:20.:50:22.

Britain's rise to head the G7 growth table within a few years of the

:50:23.:50:28.

great recession was inevitable. Madam Deputy Speaker, I don't

:50:29.:50:30.

believe that any recovery is inevitable and certainly not one

:50:31.:50:34.

that generates more jobs th`n the other 27 countries of the ET put

:50:35.:50:38.

together. Roath are driven by a determined partnership betwden

:50:39.:50:42.

government and business, with MPs across the House playing our part by

:50:43.:50:46.

hosting jobs fairs, hiring apprentices and helping bushnesses

:50:47.:50:50.

to export. So let me say a few words about Gloucester, where in 2011 I

:50:51.:50:56.

hosted the first constituency and County China seminar with the

:50:57.:51:01.

China-Britain business Council. Here are some of the manufacturing things

:51:02.:51:04.

we export from Gloucester, to bring some cheer to the SNP benchds about

:51:05.:51:09.

the state of Manufacturing. We export cylinders which are hn every

:51:10.:51:12.

Dyson vacuum cleaner in the world. We export giant vowels into the oil

:51:13.:51:18.

and gas sector. We export ddntal drills, predominantly to Chhna and

:51:19.:51:27.

America. -- giant... We export marine diesel engines for ctstoms

:51:28.:51:30.

and other marine boats. We dven make shirts which are sold both directly

:51:31.:51:34.

from the factories in Gloucdster or via Jermyn Street in London. We have

:51:35.:51:39.

a series of manufacturers who are subcontractors in the world of

:51:40.:51:42.

aerospace and especially to Abbas Khan with the landing gear for every

:51:43.:51:48.

Airbus, several Boeings and every Eurofighter may just outsidd

:51:49.:51:51.

Gloucester. It is true that we have not yet sold our Made in Gloucester

:51:52.:51:56.

rigid bats to China, Madam Deputy is bigger. I'm working on it. But I can

:51:57.:52:00.

confirm that Gloucester entrepreneurs have sold flavoured

:52:01.:52:05.

tea back to China. This is part of an overall UK growth in exports to

:52:06.:52:10.

China and Asia which now generates over ?500 billion of exports per

:52:11.:52:15.

year, up some ?80 billion shnce 2010. I pay tribute to ministers in

:52:16.:52:19.

the UK TI who have added to resources in China although I would

:52:20.:52:22.

add that some modest rebalancing towards Southeast Asia would be very

:52:23.:52:26.

welcome. There's always mord to be done on exports and growth. As the

:52:27.:52:30.

member for East Antrim said, we could not and should not ovdrride

:52:31.:52:33.

the current situation. Here are a few suggestions. -- over egg. A

:52:34.:52:39.

restructure of UK TI resources to focus on where value can be most

:52:40.:52:43.

added, which I believe is h`ppening as we speak. I believe valud is best

:52:44.:52:48.

added, not by writing reports but by a serious customer relationship

:52:49.:52:51.

driven approach. Secondly, additional trade envoys for markets

:52:52.:52:55.

where nothing is easy but everything is possible, and doors need to be

:52:56.:52:59.

opened by representatives of the Prime Minister. The model is proven

:53:00.:53:04.

and it provides continuity with government overseas. Thirdlx, a

:53:05.:53:07.

focus on the industries of the future and the honourable exception

:53:08.:53:11.

on the SNP benches to the t`ble of gloom was provided by the mdmber for

:53:12.:53:19.

Inverness. He focused a bit on the industries of the future, creating

:53:20.:53:26.

me do it -- creating media, cyber, fin tech and aerospace technology as

:53:27.:53:29.

whether these are some of the great exports would buy the way include

:53:30.:53:32.

education. Fourthly, closer relationships with universities not

:53:33.:53:40.

just for the export potenti`l but also for their research output. I

:53:41.:53:44.

give for example be wonderftl electron, driverless robot pods that

:53:45.:53:47.

deliver some people to their flight at terminal five at London Heathrow

:53:48.:53:51.

from the car park. It is a Bristol University output. Lastly, greater

:53:52.:53:58.

use of technology to capturd both the success of SME exporters and

:53:59.:54:02.

communicate this movie by fhlm to seminars for example as far away as

:54:03.:54:06.

Baldassarri, Pembroke, Plymouth or Perth. What can't be doubted in all

:54:07.:54:12.

of this is the government's commitments to business and exports,

:54:13.:54:15.

led by the Prime Minister hhmself, as the member for Macclesfidld

:54:16.:54:19.

rightly pointed out an succdssive trade ministers. It can also be

:54:20.:54:22.

seen, this commitment, in tdrms of the expansion of capital av`ilable

:54:23.:54:26.

from the UK Export Finance, the reduction of red tape, corporate tax

:54:27.:54:30.

and the increase of the allowances I have referred to, as well as new

:54:31.:54:35.

sector specific funds like the skills investment fund, viddo games,

:54:36.:54:39.

quite a tight fund, patents box new investment clowns, so important in

:54:40.:54:43.

the oil and gas sector in Scotland. Last but by no means -- no leans

:54:44.:54:47.

least, the creation of a grdat campaign from number ten itself his

:54:48.:54:50.

creator was awarded an OBE hn the New Year's honours and quitd

:54:51.:54:57.

rightly. This makes, I belidve, for a strongly export and growth focused

:54:58.:55:02.

government. Clearly, there's another aspect of UK TI's work which has not

:55:03.:55:07.

been mentioned which is inw`rd investment. With our mountahns of

:55:08.:55:11.

inherited debt, weenie others to finance infrastructure growth. We

:55:12.:55:15.

have been in almost doubling direct investment in the last five years.

:55:16.:55:20.

-- we need others. Why does this boost and had a it boost UK

:55:21.:55:23.

manufacturing, in response to the question asked by the member of East

:55:24.:55:27.

Lothian earlier? For exampld, so much of the design, construction,

:55:28.:55:32.

servicing and operation of the new Hinkley Point power station will be

:55:33.:55:35.

by British companies and Brhtish expertise. While these figures do

:55:36.:55:39.

nothing for export in themsdlves, they do boost manufacturing and

:55:40.:55:44.

growth. The same will be trter Crossrail, HS2 and other kex

:55:45.:55:47.

infrastructure projects. -- true for Crossrail.

:55:48.:55:59.

When other aspect missing from the debate so far has been the hmpact of

:56:00.:56:07.

tourism to Britain, boosted by our heritage, and important incdntives

:56:08.:56:11.

to film makers, some of which were introduced by the current Sdcretary

:56:12.:56:15.

of State, and tourism follows another great success which is our

:56:16.:56:19.

bids to host sporting events. The Labour Party can't take pride in

:56:20.:56:24.

this accessible bid for the 201 Olympics. I have experience from the

:56:25.:56:28.

great World Cup of Rugby 2005 and the impact of the games on the city

:56:29.:56:35.

of Boston. I pay tribute to the captain of the Scottish rugby team

:56:36.:56:39.

who is our scrum-half, Craig Laidlaw. Scotland itself of course

:56:40.:56:46.

will remember surely since this is an SNP driven motion, the ilportance

:56:47.:56:52.

of these great sporting events on the Commonwealth Games in Glasgow.

:56:53.:56:58.

This is a government doing hts bit for growth in a series of dhfferent

:56:59.:57:03.

ways. Which brings me to my last point about Scotland. In thd

:57:04.:57:08.

18th-century, when Scotland joined England in arguably the most

:57:09.:57:10.

successful union in the world the land of my ancestors was full of

:57:11.:57:17.

entrepreneurs. They exported not just products but themselves around

:57:18.:57:21.

the world, setting out the largest non-government employer in Hong

:57:22.:57:25.

Kong, starting a still flourishing tea business in Bangladesh `nd

:57:26.:57:31.

Kenya, creating teak merchants in Burma, railroads in Canada, and

:57:32.:57:36.

helping Ruffles establish Shngapore and much more beside. My ancestors

:57:37.:57:41.

exported themselves to Northern Ireland and helped create the linen

:57:42.:57:45.

business there. My point about these great Scotsman is that they did not

:57:46.:57:49.

advocate a welfare state or an ever-increasing role for thd

:57:50.:57:53.

government, or belong to thd International Marxism, like the

:57:54.:57:59.

member of East Lothian. Thex were innovative, and they got on with the

:58:00.:58:03.

business of business. So whdre are they today? The Scottish banks

:58:04.:58:09.

crashed, oil and gas is strtggling, nuclear defence is disdained, time

:58:10.:58:18.

for the SNP to get behind the new entrepreneurs and increase

:58:19.:58:23.

Scotland's share of net exports 7%, slightly less than the used

:58:24.:58:28.

Midlands. I think the land of my ancestors can punch significantly

:58:29.:58:29.

better than that.

:58:30.:58:31.

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